Fabian Cambero

SANTIAGO (Reuters – Market fundamentals are solid despite volatility in the market and prices will continue to rise for at least 12 months. Ivan Arriagada is CEO of Chile. Antofagasta (LON:), forecast.

Arriagada spoke to Reuters at the CRUCESCO World Copper Conference, Santiago. He also stated that the company was still interested in developing its Twin Metals project despite Biden’s refusal of renewing its licenses.

The company remains on the hunt for deals in copper, but has no other options.

Arriagada explained that he based his prediction on copper prices because of the important role copper has in energy transition. This is especially true for electric cars.

“The important thing in the near term is to have a solid market fundamentals over the next twelve months,” Arriagada stated. The current environment is tight due to supply chain conditions and inflation. All that means that we expect prices will remain at their recent levels, which are still good prices. 

But he stated that in the middle of the Ukraine conflict, the world’s economy has entered a phase with lower growth and this will be something to consider going forward.

It is still aiming to produce 660,000-690,000.000 tonnes in the current year. The company has to consider the effects of drought on its Los Pelambres flagship mine. This will be offset by a desalination facility in the second half.

Arriagada reiterated Antofagasta’s desire to produce 900,000 tonnes per year by 2026. He cited the company’s deposits.

He stated that “we have the resources mining to support that projection” and that he had a plan for making such investments, provided that the permit permits are granted.

Antofagasta’s board must make a decision about whether the new plan for Centinela’s concentrator should be implemented by the end the year, in a period of uncertainty that includes a new Leftist government as well as the draft of a constitution.

We want to be able to see the prevailing conditions for making that investment, and so we hope the current processes will have a degree “of progress.”

A plan to establish a mining royalty in Chile is also being considered.

“In tax decisions, the balance between contribution through taxes & industry competitiveness must be maintained,” he stated.

TWIN METAL

Antofagasta was unable to renew its federal licenses in the United States, which led to a setback for the Twin Metals project. Arriagada stated that the suspensions had an impact on a large portion of Antofagasta’s mining operations but did not have any effect on the remainder of the licenses.

“We are evaluating which legal option is best to reverse these decisions,” Arriagada explained.

“I’m hopeful that we can determine the most legal way to get these licenses back over the next six-months,” he said.

It is expected that the company will be able implement the project before the end of this decade.

Arriagada on the other side said that although the company was open to potential acquisitions to grow its portfolio, he acknowledged they were very limited.

Arriagada said that Peru, despite its ongoing political turmoil, is still a place of interest.

“We have a team there searching for exploration targets. That could be of interest to us and we prefer that area (Americas), and we view our projects with a longer-term outlook,” Arriagada explained.

(Report by Fabián Andrés Cambero; Edited by Manuel Farías and Leslie Adler)