Lower Grades, Higher Taxes Contribute to Increase in Copper Miners’ Capital Costs: Report

Platts reported that a new study from SNL Metals Economics Group, blames a a variety of factors, including lower ore grades, higher royalties and taxes and environmental costs for jacking up capital costs for copper miners.

As quoted in the market report:

With declining ore grades exacerbated by increasing energy and other costs, and significant deposits being found at greater depths or in more remote areas, the average capital costs for copper production capacity in new mines increased an average of 15% per year over the past 20 years, with much of the increase evident since 2008,” SNL MEG said in a statement.

To view the whole Platts report, click here.