Chile expects to earn $2.86bn from mining royalties this year, thanks to higher mineral demand.
About $1.57bn will come from private miners and $1.29bn, or the 45pc, from Codelco, the Chilean company that’s also one of the world’s biggest copper producers, Chile’s Minister of Mining Baldo Prokurica said in a statement.
Chile, one of the world’s biggest copper producers, has been hampered by the COVID-19 pandemic through most of the year. Copper production in the country fell by 6.1pc to 481,700mt in August from 513,300mt a year earlier, according to the latest figures released by the Chilean Copper Commission (Cochilco).
Chilean copper production is expected to decline to 5.71mn mt in 2020 from 5.78mn mt last year, added Cochilco.
Chile’s copper prices are expected to close this year $2.62/lb, 23¢/lb below its guidance, announced in January, due to market uncertainties stemming from the pandemic.
Copper prices reached $3.03/lb on Oct 13, decreasing by 1.03pc from a day earlier, according to data from Cochilco.