In 2020 the mining sector will have sulfuric acid surplus
This would occur due to lower projected consumption, together with increases in the production of this strategic input in the production of copper, revealed Cochilco.
“An analysis of the history received from sulfuric acid producing and consuming companies, it shows a significant change in the prospects of the Chilean market compared to previous years, by reversing the current deficit condition to a surplus situation to be presented to the year 2020 onwards, due to lower projected consumption, together with increases in production, “says a study performed by Cochilco. And in that sense, the state agency says that sulfuric acid is both a product and a strategic input in copper mining.
Cochilco adds that “Chile keeps a high level of consumption of sulfuric acid, due to its use in the leaching of copper, which by 2013 reached 8.36 million tons, which would continue up to a maximum level of 9.06 million tons by 2016. Subsequently the annual consumption will tend to decline, particularly since 2020 (7.43 million tons) reaching 6.35 million tons by 2023, 2 million less than the one recorded in 2013 .
The agency explains that the main cause lies in the lower projected cathode by means of leaching of copper, whose peak occurred in 2009 when it reached 2.11 million tons. Subsequently remained on the level of 2 million, until last year when It fell to 1.93 million tons. However, the updated SX-EW production forecast shows a sharper decline than previously expected, particularly since 2017 (1.76 million tons) to stand at 1.13 million tons by 2023.
More Production
The required acid production in foundries will increase by optimizing their operations, among other reasons to comply with the new emission standards for SO2 and particulate matter that will be required no later than 2019.’s. It is thus how its acid production would increase by 1.27 million tons in the period. No other expansion plans.
On the other hand, is on the side of the voluntary production where plans for two sulfur burners are maintained, with a total capacity of 0.91 million tons of sulfuric acid. They may operate from 2016.
Having two additional contributions of acid production, the country would have a year 2023 with a capacity of 7.83 million tons, 1.83 million of which correspond to voluntary production. To medium term the Chilean market will remain in structural deficit, although with decreasing trend.
For the base case, which does not include potential projects of consumption and production, is projected the surplus-turn to be recorded from the year 2020 to grow in the following years (0.71 million ton in 2023). If only to the base case are added potential projects of consumption without considering the production ones, surplus would emerge by 2023 (0.51 million tons in 2023). By also adding the potential production projects, the surplus is presented in 2020 and of greater magnitude than expected for the base (1480 to 2023 ton) case.
Source: Estrategia
