Global copper mine production expected to increase by 7.8% year-on-year in 2021

In its latest industry report, market analyst Fitch Solutions found that global copper mine production will increase by 7.
8%
year-on-year in 2021 due to the low base effect of multiple new projects coming online and reduced production in 2020 due to Covid-19 lockdowns.

Production is expected to be strong in the coming years as many new projects and expansion projects come online
, supported by rising copper prices and demand.

Fitch forecasts that global copper mine production will grow at an average annual rate of 3.
8% from 2021 to 2030, from 20.
2 million tonnes in 2020 to 29.
4 million tonnes
by the end of 2030.

Chile is the world's largest copper producer, and the leading project development is mainly by large mining companies BHP Billiton and Tektronix Resources, which are attracted
by the country's developed infrastructure, extensive reserves and stable social environment.

Chile has attracted a lot of mining investment in recent years, which will start to pay off in the coming years as new projects come online, with analysts' growth forecasts for 2021 largely kicked off
by BHP Billiton's Spence Growth.
The first production took place in December 2020 and once capacity is increased, deliverable copper production will increase by 185,000 tonnes per year, but the expansion process is expected to take 12 months
.

Fitch noted that in the long term, the decline in average ore grade across the industry in Chile poses a significant downside risk to production forecasts, as ore grades decline and more ore needs to be processed to produce the same amount of copper ore
.

Copper is in high demand in renewable energy and electric vehicles, but new deposits are scarce and increasingly difficult to mine
.
While Chile is the world's largest copper producer, Fitch expects Australia and Canada to dominate the new project
.
The analyst ranked the top ten copper mining projects in the world based on capital expenditure, and Chile was not on
the list.

The first was Seabridge Gold's KSM project in British Columbia, Canada, with a capital expenditure of $12.
1 million
.
In November 2020, Seabridge resubmitted its technical report: proven reserves: 460 million tons; mine life: 44 years
.
The project includes the Kerr, Sulphurets, Mitchell and Iron Cap deposits
.

Rio Tinto-controlled Turquoise Hill Resources came in second with a massive expansion of Oyu Tolgoi in Mongolia with capital expenditures of $11.
9 million
.
The project has been plagued by delays and cost overruns, but Turquoise Hill is expected to start production
in October 2022.
The mine's US$5.
3 billion underground development remains on schedule for completion in 2022; Rio Tinto owns a 50.
8% interest
in Turquoise Hill Resources.
Proven reserves: 355 million tons; mine life: 31 years
.

SolGold and Cornerstone Resources' jointly held Cascabel project in Ecuador is in third place, with capital expenditures of just over $10 million
.
Measured resources: 1.
192 billion tons, mine life: 66 years, project includes Alpala deposit, estimated production: 150,000 tons/year; Proven reserves: 604 million tons, mine life: 33 years, estimated production: 175,000 tons/year
.

In fourth place is Papua New Guinea's Freida River project with a capital expenditure of $7.
8 million
.
Proven reserves: 569 million; mine life: 20 years
.

MMG's Izok Corridor project in Bathurst Bay, Nunavut, Canada, ranked fifth with a capital expenditure of $6.
5 million
.
Proven reserves: 21.
4 million tons; The project includes the Lake Izzok and High Lake deposits
.

Teck's Galore Creek project in British Columbia, Canada, ranked sixth with $6.
1 million in capital expenditure
.
In October 2018, Novagold Resources sold a 50% stake in the project to Newmont Corporation with proven reserves: 128.
4 million tons, mine life: 18.
5 years, and estimated production: 146,100 tons/year
.

Alcantara Group's Tampakan project in the Philippines ranked seventh
with a capital expenditure of $5.
9 million.
However, in August 2020, the Philippine government cancelled its agreement
with Alcantara Group to develop the mine.
Estimated production: 375,000 tons/year, mine life: 17 years
.

Kaz Minerals' capital expenditure of $5.
5 million in Russia's Baimskya project; Mine life: 25 years; Measured resources: 139 million; it is expected to start green tea in 2027, with an annual production capacity of 250,000 tons/year
.