Antofagasta cuts production guidance for 2015

Chile-focused copper miner Antofagasta has scaled back its guidance for production this year by 15,000 tonnes.

Antofagasta had hoped to mine 710,000 tonnes this year, but warned in March that the impact of protests in the first quarter at its Los Pelambres project had reduced production by 8,000 tonnes.

An adverse court ruling at the project also meant that there is "some inherent uncertainty" on 2015 production levels, the company said at the time.

At its annual general meeting with shareholders on Wednesday, chairman Jean-Paul Luksic said the company is now targeting 695,000 tonnes of copper in 2015.

At Antofagasta's AGM, Luksic addressed the uncertainty at Los Pelambres, where it has been ordered to destroy at least part of a tailings dam wall after a court ruled that works do not allow the natural flow of a stream to a nearby town. The company, which assured it has always complied with laws and regulations, has appealed the decision.

"We will seek to resolve these challenges and will continue to engage with the local community as well as considering the exercise of all available legal measures that may be required to overturn any adverse court decisions," he said.

He said that while copper prices "remain weak and volatile", Antofagasta's actions to consolidate the business last year put it in a stronger financial position once the market recovers.

"Our strategy in this environment remains robust and consistent: we focus on lower risk / higher return projects such as brownfield expansions while steadily advancing our greenfield projects as part of our long term growth. We seek only to invest in projects that we expect to offer strong returns," he said.