Even state run mining companies are worried about cost escalation these days.
The government handlers of Chilean major miner Codelco called in top management on Friday to discuss the issue.
Following the meetings, national Finance Minister Felipe Larrain said that Codelco “faces major challenges to hold down costs” for its expansion projects. He noted that a “frank discussion” was had about controlling project expenses.
Codelco is being affected by high costs for things like labor and electricity. The same kinds of items that are making mines around the world difficult to build.
Concerns like those of the Chilean government are a sign that projects are increasingly becoming unviable. Until the world finds a solution to high costs, it’s going to have a hard time getting the copper, gold and oil that it needs.
Here’s to some more frank discussions,