((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Pratima Desai
Chilean company Codelco plans to invest nearly $6 billion next year in its project portfolio, about $1 billion more than the state-owned mining giant had previously estimated, its president Maximo Pacheco told Reuters Monday.
Codelco plans to spend about $4.7 billion this year on projects to upgrade its mines, including Chuquicamata and the El Teniente mine, which contains the world’s largest underground copper deposit.
These projects have been delayed for years due to cost overruns running into the billions, accidents and operational problems. They failed to deliver the promised increase in production, according to the company’s own projections.
The final amount of capital spending for 2025 will be approved at a board meeting in December, Pacheco said.
“We know that the company will increase its debt next year to continue to support the projects… the money we spend on capital expenditure is very attractive in terms of economics”
Chile is the world’s largest copper supplier and Codelco accounts for just over a quarter of national production. It makes a major contribution to the country’s finances.
In early September, Codelco bought Enami’s 10% stake in Teck’s Quebrada Blanca mine in northern Chile for $520 million, which Pacheco said will be paid in cash.
Mr. Pacheco said Codelco would produce between 1.325 million and 1.352 million tonnes of copper this year and production was expected to be higher next year, without giving a figure.
Its production fell in 2022 and 2023.
“This is a topic that concerns us because we have realized that copper is very important in today’s world for energy acquisition, infrastructure improvement, renewable energy and intelligence artificial with all data center requirements.”
China remains a strategic market for Codelco, as it is generally loss-making and needs to import copper. Codelco is working to diversify its markets, but Mr. Pacheco said “nothing will change dramatically in our portfolio.”
Mr Pacheco said Codelco was open to working on joint ventures with Saudi Arabia, which is looking to invest in mining assets around the world.
