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Surging costs to crunch mining margins

Sharply higher prices for diesel, electricity, labour and consumables have boosted the marginal cost of producing copper by a project-damaging 30% over the past 12 months, according to Citi's latest assessment of the copper market.

Surging costs to crunch mining margins

From an industry-wide marginal production cost of US$6150 a tonne in 2021, the cost of producing copper has risen to $8000/t, the bank said. Some existing mines will struggle to trade profitably in...

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