COPPER: Mining costs quadruple over 10 years in Chile

CHILE – A study prepared by GEM consultants and published in the Perspectiva magazine found that operating costs at Chile's copper producers quadrupled between 2004 and 2013. Costs rose from an average of $0.42 per lb to a little over $1.60 per lb.

And the increases are among the highest in the world, leaving Chilean producers in a less competitive position that producers in many other countries.

Upward pressure on operating costs comes from a number of factors. Labour costs and benefits rose during the boom early this century. The country's poor energy planning is pushing the cost of electricity ever higher as consumption rises. The increase in labour and other critical input costs account for 50% of the rise. Add in lost productivity, and 80% of the growth can be explained.

This information originally appeared at LatinoMineria.com.