Base metals producer Lundin Mining is forecasting a big jump in copper production next year, driven by higher grades at the Candelaria mine and full-year uninterrupted contributions from Candelaria and Chapada.
The Toronto-listed miner said that its copper production should increase by 25% in 2021, compared with its 2020 guidance. Total copper production is forecast to be between 275 000 t to 299 000 t in 2021.
A more-than-month-long strike at Candelaria, in Chile, ended on Friday, prompting the company to reintroduce its guidance for 2020. Candelaria is forecast to produce between 120 000 t and 125 000 t at a cash cost of $1.50/lb this year.
Chapada, in Brazil, is also set to return to full production capacity this month and is forecast to produce 45 000 t to 50 000 t of copper and 80 000 oz to 85 000 oz of gold this year.
Lundin expects its zinc production to be between 141 000 t and 151 000 t in 2021, before increasing sharply to between 183 000 t and 198 000 t in 2022, when the Neves-Corvo Zinc Expansion Project (ZEP), in Portugal, completes its ramp-up in the first half of that year.
The company said that the ZEP would restart in January.
Nickel production is forecast to maintain current levels in 2021 at 15 000 t to 18 000 t, before increasing by 10% in the following year.