BHP continues copper cuts

Vancouver — Responding to weak demand for copper, BHP Billiton (BHP-N) says it will extend production cuts at the Escondida and Tintaya operations in Chile and Peru, respectively.

In November 2001, the diversified major announced a 170,000-tonne reduction in copper production at the two mines combined. Now it intends to slash an additional 80,000 tonnes at Escondida this year, bringing the combined reduction to 250,000 tonnes.

Overall, production at Escondida is expected to produce slightly less copper in 2002 than in 2001.

“Although leading indicators suggest that demand for copper should begin to improve, the physical market continues to be weak,” says Mills.

Tintaya, a sulphide operation, which is capable of producing 90,000 tonnes of copper in concentrate per year, will remain closed until at least January 2003. The oxide plant, which began operation in April, will continue to produce copper cathode at the annual rate of 34,000 tonnes.

“Looking forward to calendar 2003, if market conditions warrant, BHP Billiton will be in a position to respond to real increases in demand by operating Escondida and Tintaya at full capacity,” says Mills. “Escondida’s capacity will increase to 1.2 million tonnes per year over the next five years, and Tintaya’s capacity, including cathode production, will rise to 124,000 tonnes per year.”