Mining will increase sulfuric acid deficit reaching record consumption in 2014
Only towards the end of the period analyzed, the sector would achieve a balance between demand and production of this input
Sulfuric acid is important for mining because, depending on the case, can represent up to 20% of the cost structure of a company in this sector.
This input is essential in the process of copper ore leaching and SX-EW cathode production (which serve to fix the international price of copper metal) and by 2014 its local consumption would reach a record over current levels as established by the Chilean Copper Commission (Cochilco) in a report on this market projections to 2022. –
The organism is estimated that with a base case (high certainty) consumption next year would reach 9.20 million tons (ton), while 2022 would be only 6.70 million tons. Course this fall in demand is offset by including potential use projections, equivalent to 1.4 million additional tons.
“Leachable copper minerals in Chile will be presenting a gradual loss of quality, accentuated by the cases of the new projects that are starting with lower leachable resources law. In the projection to 2022, would be achieved a rate of 5.5 tons of acid per ton SX-EW cathode produced. This means emphasizing the growing trend of consumption, which amounts to 4 ton of acid / ton SX-EW cathode, compared to 2.8 for the last 10 years. This higher unit consumption will cushion the effect of the gradual decline of the SX-EW cathode production, “explains Cochilco.
This development will deepen the structural deficit of this product that by 2015 would remain above the 2.5 million tons, as insufficient local production, import the differential forces which impact the price of the acid.
“The increase in acid consumption rates have an effect on increasing the relative cost of this input for hydrometallurgical operations, a situation that has been manifesting more sharply in recent years, when the price of sulfuric acid has been in the higher levels, “says the report.
Cochilco estimate that by 2019 consumption and local production would approach, because demand would drop to levels comparable to the present, despite an SX-EW cathode production 30% lower by 2022.
“This would mean a strong competition to supply the deficit of Antofagasta area between local producers and import options. In this logistical factor and its associated costs will be relevant, “says the agency.
Source: Diario Financiero
