Top miners' Q1 2024 copper output climbs on higher grades, expansions

Combined production of the top 20 largest copper mining companies surged 5.5% year over year in the first quarter on stronger ore grades and expanding output at some large mines, S&P Global Market Intelligence data showed.

Copper output climbed by 162,319 metric tons year over year to 3.1 million metric tons, based on an analysis of the top 20 copper miners with publicly available production announcements. Still, combined production sagged 10.7% quarter over quarter on the back of mine disruptions like the closure of First Quantum Minerals Ltd.'s Cobre Panama late last year.

Improved year-over-year output comes amid surging copper prices as bullish investors flock to the metal, attracted by projections of long-term supply deficits.

S&P Global Commodity Insights upgraded its London Metal Exchange three-month copper price forecast to $9,134/t, "as strong buying by funds in the futures market is likely to keep prices elevated for at least the near term," analyst Ruilin Wang said in a May 21 report. "Persistently tight concentrate supply could continue to provide support to copper prices for the rest of 2024."

BHP Group Ltd. production grew the most on an absolute basis, up by 60,000 metric tons, or 14.8%, to 465,900 metric tons. BHP credited record production at the Spence mine in Chile, strong output in Australia and better grades at its 57.50%-owned Escondida mine for higher production.

Teck Resources Ltd. had the next biggest year-over-year increase in production on an absolute basis. Growing output from the Quebrada Blanca phase-two expansion in Chile helped lift the Canadian-listed miner's first-quarter output by 73.7%, or 42,000 metric tons, to 99,000 metric tons.

"We expect to increase copper production quarter-over-quarter as the year unfolds," Jonathan Price, Teck's president and CEO, said April 25.

Newmont Corp. copper production grew the most on a percentage basis, up 211.5% or 24,949 metric tons to 36,741 metric tons. Newmont pointed to strong copper production at Cadia East in an April 25 earnings release.

First Quantum production dropped 38,148 metric tons, or by 27.5% year over year — the most among the analyzed companies on an absolute basis. The steep drop reflected the closure of Cobre Panama, which Panama's government ordered closed last year after mass protests and a court decision.

The company continues to try to find a solution over the mine closure "to the benefit of the people of Panama," Tristan Pascall, First Quantum's CEO, said April 24.