Economic and strategic analysis of the current situation of Chilean copper smelters

Abstract

It summarizes strategic analyses regarding the future of copper concentrate exports, its problems and Chile's participation not only as a global copper producer, but as a refined copper producer. These analyses aim to develop a basis for modernization and possibly the construction of new foundries in Chile; are considered economic, competitive and strategic aspects. In Chile, an increase in the production of copper sulfide concentrates is projected, considering the depletion of oxidized minerals. This increase also includes complex or dirty concentrates with a high presence of impurities, mainly arsenic. Currently in an environmental context, Chilean smelters on average do not meet the emissions standard for copper smelters due to the age of these smelters and the high investment required to modify their infrastructure. Strategically, the increase in high impurities in concentrates results in higher treatment costs, penalties and difficulty of acceptance in the international market. With regard to the economic context of these smelters in Chile, these are among the most cost of operation worldwide. A globalized strategy for the modernization of foundries in Chile is therefore needed. High-capacity foundries are recommended, which will have state-of-the-art technology to eliminate arsenic and capture emissions and are also fed by mixtures of concentrates from different mines, with the participation of Codelco and private miners.