Ageing mines, climate change and Covid-19 to hinder production of key base metals – Cape Noir

Production output for mining companies across base metals is likely to remain low despite significant additional capacity because miners face challenges from climate disruptions, ageing mines and Covid-19-related delays, Australian consultancy and research firm Cape Noir said on Thursday November 11.

"A lot of assets are showing declines in production and rolling delays to maintenance. Assets have been run hard and are struggling under that pressure," director at Cape Noir Piers Montgomery said during a webinar organized by Marex.
While production output is expected to fall across all base metals, the most bullish is likely to be copper due to tightness in supply, Montgomery said.
"For me, it's copper. It feels like this is going to go on for a number of years and it is not as easy as people thought," he said.

"It just shows, if you lose six months of pre-strip, it is not six months to make that back up, it's years. Especially when you can only get 70% of your workforce on site. I think that's where we're going to see the [supply challenges]...

Published

Ana de Liz

Imogen Dudman

Callum Perry

November 11, 2021

17:28 GMT

London