Chile's government on Tuesday raised its outlook for the price and production of copper, the Andean nation's chief export.
The Chilean Copper Commission, or Codelco, released a report that calls for production this year in Chile of 5.7 million tons, up from the previous forecast of 5.53 million tons and 4.9 percent more than the total output for 2012.
Chile's copper production in 2014 is expected to climb to 5.93 million tons, or 4 percent more than this year, according to the study, which was presented Tuesday at the London Metal Exchange by Chilean Mining Minister Hernan de Solminihac and Cochilco Vice President Andres MacLean.
The commission, meanwhile, raised its forecast for 2013 average copper prices from $3.27 per pound to $3.32 per pound based on international price performance in recent months, although it expects average prices to fall to $3.15 per pound in 2014.
Each additional cent in the annual average price of copper translates to more than $40 million in tax revenue for Chile.
"This new estimate is contingent on a series of factors such as the size of the surplus in the copper market, the stability of China's economy and signs that the euro zone is coming out of recession," De Solminihac said in London.
Cochilco also said it expected global copper consumption this year to reach 20.6 million tons, 1 percent more than in 2012.
Global mined copper production is expected to come in at 17.9 million tons in 2013, up 4.7 percent from last year, and 18.6 million tons in 2014, 4.1 percent more than this year, the commission said. EFE