TRIVIA

Copper has been one of the raw materials that has benefited the most from the resurgence of commodity prices, something that could not have come at a better time for Chile. The Chilean Copper Commission has just readjusted upwards its projection of the average price of the red metal to US$4.20 per pound for 2021, although it maintained its projection of US$3.95 for 2022, with a 2.4% increase in demand for the metal this year. Chile is the world's largest copper producer, with 5.7 million tons per year.

How will Chile's copper production have changed in 2021 compared to 2020?

A) Will fall by 3.5%.

B) It will have a zero variation, 0%.

C) Will grow 2.8%.

ANSWER:

B) 0% -

Growth will be zero and will remain in the order of 5.7 million tons. Copper production peaked in 2018 at 5.8 million tons and has been slowly declining since then. Aging mines are the main cause of this trend. Large investments in new projects or in the expansion of existing mines in practice comes to replenish the production decline of older operations.