Codelco Sees War Disruptions Adding 5% to Cost of Making Copper

Top copper supplier Codelco expects disruptions from the Middle East war to lift its production costs by about 5%, offering one of the first quantified inflation estimates from a major mining company.

Higher diesel prices, more expensive supplies and the Chilean government’s proposed suspension of a fuel tax credit would together add roughly 10 cents per pound to Codelco’s cash costs, Chief Financial Officer Alejandro Sanhueza told reporters in Santiago on Friday. Currently, the cost stands at about $2 a pound.