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Chile is known to be world’s largest producer of copper. However, last year, Chile was also the frontrunner in mining costs despite cutting out on several projects.
“The production cost in Chile last year was 5.4% higher than the rest of the world. Chile produces nearly 6 million tonnes of global annual production of 21 million tonnes,” says Vaikundarajan, founder of VV Minerals, one of the leading sand beach mining companies in India.
Mining cost is not the only issue Chile is affected by currently. It has also been hit by high energy costs.
Experts have predicted a rise in copper prices by the year 2021. “Copper demand is growing at a rate of 2 percent every year. There will be a rise in demand of copper by 2019,” says Vaikundarajan.
Last week, copper exceeded $6000 a tonnes. This has captured the attention of Chinese speculators and the word is out that the newly elected US President will invest in the infrastructure.
The American copper and steel demand is expected to shift, resulting in a 0.4% increase in total demand.