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This graphic illustrates the copper production costs across various mines and companies worldwide in 2023. Global costs varied significantly, with regions like Kazakhstan, Peru, Mexico, and the Democratic Republic of the Congo (DRC) emerging as particularly cost-efficient. Production costs per pound ranged from as low as $0.95 at KAZ Minerals’ Bozshakol mine in Kazakhstan to over $2.00 per pound at operations run by companies like BHP and Lundin Mining. These differences highlight the influence of regional factors such as resource accessibility, infrastructure, and labor on mining expenses.
KAZ Minerals, predominantly operating in Kazakhstan, stands out as a leader in low-cost copper production at its Bozshakol and Aktogay open-pit mines. Kazakhstan provides significant cost advantages in mining with diesel at US$0.50 per liter, and electricity at just 2.5 US cents per kWh. Additionally, the country has a skilled workforce, enhancing efficiency while keeping labor costs competitive. Despite the higher labor intensity at its older East Region mines, KAZ Minerals offsets these costs with by-product revenues from zinc, lead, and silver, further enhancing its cost efficiency.
Southern Copper Corporation operates major mines in Mexico and Peru, achieving one of the lowest production costs globally at $1.03 per pound. Their large-scale open-pit mines, like Buenavista del Cobre and La Caridad in Mexico, and Toquepala and Cuajone in Peru, benefit from significant economies of scale and by-product sales, ensuring low costs and high output.
Chile’s Escondida mine, operated by BHP, remains one of the world’s most important copper assets. Despite rising costs, including $1.40 per pound in 2023, Escondida continues to optimize operations, improving feed grades and production efficiency. Chile’s robust mining infrastructure and skilled workforce help keep it competitive, despite inflationary pressures.
The DRC continues to benefit from low-cost production at the high-grade Kamoa-Kakula mine. This project, operated by Ivanhoe Mines, produces copper at some of the world’s lowest costs, thanks to rich ore deposits and efficient operations.
While key regions maintain competitive production costs, the global copper industry saw rising expenses in 2023 due to inflation, energy price hikes, and labor shortages. However, companies are mitigating these pressures through technological improvements, by-product revenues, and increased efficiency.
This article is sponsored by
Arras Minerals is a mining exploration company focused on copper and gold projects in northeast Kazakhstan, with key assets including Elemes, Tay, and Beskauga. The company also partners with Teck Resources on a 1,900 sq km exploration area funded by Teck. Arras aims to expand exploration in Kazakhstan's prolific mineral belts, leveraging untapped potential through drilling and geological surveys to define resources and grow its portfolio.
Learn more about Arras Minerals at https://www.arrasminerals.com/
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