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Antofagasta flags up fuel and sulfuric acid prices as the main risks in spite of steady operations

Ivan Arriagada, the Chief Executive of Antofagasta Minerals, said that rising fuel costs and sulfuric acids are their biggest concerns in the near future, despite the fact that its 'operations' and project pipeline continues to progress steadily.

Arriagada, in an interview with Reuters on Monday, said that the company is most concerned about the rising cost of fuel and oil.

He said that "we have seen an increase in the price of certain inputs, such as sulfuric acid, explosives and, to a certain extent, energy." "That's happening in a context where, while the copper price has fallen, it has remained at an essentially favorable level."

Arriagada stated that the company has contracts for long-term use of sulfuric acid.

He said Antofagasta continues to monitor?the market as the delivered price of?sulfuric?acid has increased in Chile. He said that Chile is a net exporter of the inputs for the copper industry. Global market conditions also have affected trade flows.

"We?are closely observing developments?in?the market," Arriagada - said. If this worsens, and supply shortages continue to increase, we could be affected.

(source: Reuters)