Antofagasta PLC on Wednesday said copper output increased in the second quarter from the first, but it still has resulted in a reduction in production guidance for the full year, amid construction work and environmental factors.

The London-based, Chile-focused mining group said copper production increased 2.5% to 149,600 tonnes for the second quarter of 2023 from 145,900 in the first quarter. Total production for the first half year increased 10% to 295,500 tonnes from 268,600 for the same period in 2022.

Antofagasta attributed these increases to improved throughput at its Los Pelambres desalination plant in the Coquimbo region north of Santiago, where throughput rates increased 24%.

Gold production increased 4.3% to 44,000 ounces in the second quarter from 42,200 in the first. Antofagasta said this was due to higher grades and recoveries at the Centinela project in the Antofagasta region, also north of Santiago. Throughout the half year, production increased 17% to 86,200 ounces from 73,800 a year before.

Molybdenum production in the second quarter, however, was down 4% to 2,400 tonnes from 2,500 tonnes in the first, due to lower contributing production from Los Pelambres and Centinela. By contrast half-year production increased 23% to 4,900 tonnes from 4,000 tonnes a year prior, again due to higher throughput at Los Pelambres.

Antofagasta said the Los Pelambres desalination plant was near the end of its commission phase, while the concentration expansion project there is aimed for completion in the second half year, following delays due to sea swells.

Antofagasta said these delays are likely to impact full-year 2023 copper production. It has consequently lowered guidance to between 640,000 and 670,000 tonnes from 670,000 to 710,000 tonnes, although it expects output to increase quarter on quarter in the second half. The revised guidance would mean flat production volume compared to the 646,200 tonnes in 2022.

However Antofagasta said the impact of the lower guidance is partially offset by ‘strong cost control across [our] operations’.

‘Looking ahead, we see resilience in the demand for copper as the global decarbonisation journey continues,’ said Chief Executive Officer Ivan Arriagada, ‘with copper essential for the transition, and this underpins our ambition to grow our business to 900,000 tonnes of annual copper production.’

Antofagasta shares were down 1.5% to 1,484.00 pence early Wednesday in London.

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