August 2017: The major mining companies in Chile have seen a pronounced deterioration in productivity over the last 15 years.
During the super cycle the goal was to increase production to meet growth in demand. However, cost control was insufficient and production increases were not efficiently implemented.
Data from the National Productivity Commission reported a 16% drop since 2000, with an annual average of 1.2%. The causes are lower grade deposits, higher cost of consumables, delays in project approvals, and cuts in exploration for new deposits. (Read more)