Atlas cuts copper production due to falling prices
Atlas Consolidated Mining Development Corp. has decided to slash the throughput at its Carmen copper mine in Toledo, Cebu by a third amid falling trend in global copper prices.
In stock exchange filing, Atlas said its board of directors approved and authorized the implementation of a comprehensive plan to reduce mill throughput at the Carmen Copper mine” to 40,000 tonnes per day from 60,000 tpd.
“The impact of the plan is estimated to reduce 2016 and 2017 copper production by 33 percent after implementation,” Atlas said.
The decision was reached after exhaustive review by Atlas management, the mining firm said.
Atlas is jointly owned by bilyonaryo Henry Sy and the Ramos family which owns the National Bookstore chain.
The move was in response to the recent decline in copper prices. From an average price of $3.11 per pound in 2014, LME copper prices fell to $ 2.49 in 2015 and dropped further to $2.11 in the first quarter of the year.
“While the [board] views the long-term outlook for copper positively in the short term the company must respond to current market conditions to optimize cash flow while protecting its large mineral resources of the longer term and to position the company to enhance performance and throughput when copper prices improve,” Atlas said.
“Management continues to vigorously pursue measures to reduce operational and administrative costs as well as achieve improved levels of operational efficiency,” it added.