The question of price is one involving certain considerations to which attention may be drawn. The present conditions and the comparative steadiness in the copper market have been shown in a recent review to result in part from:—
(1) The concentration of the copper industry in a few strong hands, which, whilst maintaining healthy competition, keeps the market free from such outside pressure as would reduce the price too much, and by restricting unprofitable output, brings production and consumption into equilibrium, making for stability.
(2) The comparative cheapness of money, which has allowed of the financing for large production, with the prospect of absorption not being long delayed.
At the same time, some of the richer and more cheaply worked mines of former times are gradually approaching exhaustion—recent instances of this will be readily recalled, whilst the disadvantages of having to work lower-grade deposits at greater depth have also tended to increase the price of metal. These conditions, on the other hand, have been counterbalanced by improvements in the mining and metallurgical processes concerned, by the opening up of new districts, and by the economies resulting from amalgamation of interests, involving closer organisation and enormous outputs of material.
Apart from finance, two of the factors most likely to affect the price of the metal considerably are the possible replacement of copper for electrical transmission purposes by conductors of other metals; and further, the enormous prospective production in the newer districts, such as Utah, Nevada, and Tanganyika, in the course of a few years.
The cost of production of the metal is so dependent on local and general circumstances as not to admit of analysis in this place. Questions of locality, transport facilities, proximity to supplies of every kind, problems of labour, capitalisation, bye-products, and numerous similar considerations have such an important bearing on each individual case as to convey a definite meaning only to the man on the spot. In the same way, detail costs of each stage of the copper smelting processes are influenced by similar circumstances.
Broadly speaking, the average total cost of production and marketing at present may be taken as being somewhere about 10 cents per pound of copper; in certain specially favoured cases, 9, 8, or even 7 cents per pound. The newly opened low-grade “porphyry” camps at Utah and elsewhere, which have been commenced under an enormous capitalisation, anticipate a production at a cost of about 6 cents per pound when steady and normal running is in progress.
A recent analysis gives interesting information with regard to the cost of production estimated at different plants. Of the American output of about 480,000 tons in 1909—
Copper Statistics.—The outstanding features which attract attention in the statistics of copper production will be most readily seen from the curves of fig. 2. The enormous increase within recent years in the total output of metal, and the overwhelming proportion produced by the United States of America, is clearly indicated. The curves also show the practical extinction of the native supply of Great Britain and the steady output of Spain and Germany.