Chilean Mining Industry Faces Decline in Sulfuric Acid Consumption by 2032

The mining industry in Chile, a key player in global copper production, is poised to see a significant decline in sulfuric acid consumption, a crucial component in copper extraction and processing. According to a recent report by Cochilco, sulfuric acid consumption is expected to drop by 34.2% by 2032, a trend closely related to the scheduled closure of several major mining sites.

The projected decrease in sulfuric acid consumption and production is directly linked to the closure of several mining operations in Chile, including Pampa Camarones (2028), Mantos Blancos (2027), Centinela Óxidos (2029), and Sierra Gorda (2031). These closures will not only reduce sulfuric acid production but also its consumption, as these mines are significant consumers of the chemical in their extraction processes.

Sulfuric Acid in Mining

Sulfuric acid is vital in various stages of copper mining, aiding in the dissolution and separation of copper minerals from rock and refining copper to eliminate impurities. The demand decrease is attributed to the depletion of oxidized zones in deposits that are processed using the hydrometallurgy technique of leaching, which requires large amounts of sulfuric acid.

Market Forecast and Production Dynamics

• The forecast predicts a 15.2% increase in sulfuric acid production for 2023 but an average drop of 5.3% in the medium term, mainly due to the exit of key producers like Noracid.
• The minimum production of sulfuric acid is expected to be reached in 2028, with a total of 4.3 million tons.

Beyond Mining: Broader Uses of Sulfuric Acid

Almost half of the world's sulfuric acid supply is used in agriculture and livestock farming as a phosphate-based fertilizer. It also finds applications in the chemical and pharmaceutical industries, with an expected increase in demand in the coming years.

Economic Implications

Sulfuric acid purchases represent a significant portion of total unit costs in the mining industry. The Cochilco report anticipates a downward price adjustment for sulfuric acid, projecting a long-term price value of around $95 per tonne. This shift in the sulfuric acid market reflects broader changes in Chile’s mining industry and has wider implications for global copper production and related industries.