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    Sulphur 420 Sep-Oct 2025

    19 September 2025

    Codelco warns Chile’s copper output could stagnate

    Codelco warns Chile’s copper output could stagnate

    Copper production in Chile may stall at around 5.5 million t/a because of the growing challenges mining companies face, according to Maximo Pacheco, chairman of state-owned Codelco. Deeper mining operations, falling ore grades and rising costs all reduce the chance of overall output increasing, he told an industry conference. Nevertheless, Codelco is pressing ahead with a multi-billion dollar investment programme with the goal of returning to a historic production rate of 1.7 million t/a, compared to the current 1.35 million t/a or so.

    Pacheco’s comments, reported by sector journal Mining.com, coincide with the company having evacuated workers from El Teniente in recent days due to an earth tremor, a month after an earthquake caused a rockfall which killed six workers and injured nine. Following that incident, Codelco revised its 2025 production guidance downwards to between 1.34 – 1.37 million tonnes of copper, from a March estimate of 1.37 – 1.40 million tonnes.

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    Price Trends

    The global sulphur market has entered a holding pattern, as a wave of bearish sentiment has so far failed to move stubbornly high spot prices. The departure of a significant volume of product from the Middle East has emboldened buyers and shifted market sentiment firmly towards bearish, but at time of writing this has so far failed to translate into lower prices. With sellers in no hurry to lower prices and spot availability still tight, the market has stalled as both sides wait for the other to blink first.

    Restart for Hongda smelter

    Hongda's 100,000 t/a zinc smelter, in China's Sichuan Province, completed scheduled maintenance and equipment upgrading and officially resumed production on 21st June, the company said. The smelter had been shut down for planned maintenance since January, during which time a modernisation project for the electrolytic zinc smelting system was also carried out. Following the nearly six-month revamp, the resumption of production is expected to improve overall operational efficiency, reduce unit production costs, and increase the utilisation rate, The company said. The stable supply of sulphuric acid generated by the zinc smelter will effectively leverage the synergies of the "sulphur-phosphorus" industrial chain in the company, an help alleviate cost pressures on the company's phosphorus chemical business segment.