Two FTSE 100 mining groups groups have posted bullish production updates, despite challenging supply issues such as labour shortages and inflation, alongside reduced demand from China and a looming global recession.
Antofagasta has reported robust output in its third quarter update, with copper production nearly doubling amid increased water availability at its Los Pelambres site in Chile.
The London-based, South America-focused mining group specialises in producing copper concentrate, containing gold and silver through a milling and flotation process.
For the third quarter, Antofagasta revealed its copper production had reached 181,900 tonnes, 40 per cent higher than in the prior three months of trading.
Meanwhile, gold production was 33 per cent higher at 46,900 ounces, while molybdenum production rose 30 per cent to 2,600 tonnes.
BHP trumps miner rival Rio Tinto amid China headwinds and recession fears
Rival BHP Group has also reported a strong increase in production across the board.
It has announced rising output for iron ore and copper over the past quarter, despite China sticking firmly to its zero Covid policy and concerns of a global recession.
In the three months to the end of September, BHP’s iron ore production rose three per cent year-on-year to 65.1, tonnes.
Meanwhile, copper output has soared nine per cent year-on-year to 410,000 tonnes.
BHP has left its annual output guidance unchanged and expects iron ore production between 249-260m tonnes and copper production between 1.6-1.8m tonnes.
The higher production rates comes despite an 18 per cent fall in spot prices of iron ore over the September quarter, hampering economic activity and slashing demand for iron ore.
The decline in prices caused rival Rio Tinto to lower its forecast for iron ore shipments after quarterly deliveries fell.