Brazil copper output seen doubling by 2010
Wed Mar 28, 2007 4:02pm ET31
yahoo.reuters.com
SANTIAGO, March 28 (Reuters) - Brazilian copper metal production capacity, fueled by strong demand and high prices, is due to double to 368,000 tonnes by 2010, from 163,000 tonnes in 2006, Brazil's copper industry leader said on Wednesday.
"Growth will be stronger in copper metal than products," Geraldo Haenel, President of the Brazilian Copper Assocation, told reporters on the sidelines of the 6th CRU World Copper Conference.
Copper metal output is seen jumping 27 percent to 213,000 tonnes in 2007 with the start-up of production by Canada's Yamana Gold Inc.
Yamana Gold Inc. (YRI.TO: Quote, Profile , Research) is expected to produce 48,000 tonnes, Companhia Vale do Rio Doce (CVRD) (VALE5.SA: Quote, Profile , Research)(RIO.N: Quote, Profile , Research) 140,000 tonnes and Mineracao Caraiba 25,000 tonnes of copper this year.
CVRD started producing copper at Sossego, near Carajas in northern Brazil in mid-2004.
It has four more copper projects in the pipeline and in January CVRD's Chief Executive Roger Agnelli said the company expected to press ahead soon with the Salobo project which could produce 200,000 tonnes a year of copper metal over 30 years.
Haenel, also chief executive officer of the Paranapanema non-ferrous metals group, added that production capacity of refined products -- copper wires, cables and brass -- which totaled 220,000 tonnes in 2006, will increase at a slower rate.
Paranapanema owns Caraiba Metais, Brazil's only copper smelter, which has been studying a capacity expansion.
Haenel said that Brazilian copper consumption, which fell to 340,000 tonnes in 2006, from 350,000 tonnes in 2005, and from 362,000 tonnes in 2004, is expected to recover in 2007 due to increased economic growth.
Electric wires and cables account for two-thirds of Brazilian demand. Sales volumes are seen rising by 5 to 10 percent this year.
Brazilian per capita copper consumption has been static at only 1.8 kilos per year in recent years.
In 2006, Brazil imported some 535,000 tonnes of copper concentrate and exported 361,000 tonnes. Despite an unfavorable exchange rate, Brazil was still exporting, Haenel said. Exports are set to rise as CVRD brings new copper mines into production. |
