Anglo American PLC (LSE:AAL) has announced the opening of a new copper mine in Peru against a backdrop of plunging metal prices.
The Quellaveco operation is expected to deliver around 300,000 tonnes a year at full nameplate capacity and required around US$5bn of investment to take into production.
However, its opening could not have been more poorly timed given the price of copper on Monday hit a 20-month low of just over US$3.40 per pound amid recession fears and faltering demand by Covid-hit China.
The outlook for the red metal looks a little more robust, according to the Australian government’s Office of the Chief Economist, an authority on natural resources economics.
Last week, it said it expects prices to recover to average US$4.30 per pound this year, dipping back slightly to US$4.08 by 2024 as global surpluses grow.