KEY POINTS
- Codelco’s copper production increased year-on-year in August and September.
- Codelco is forming partnerships and seeking to expand lithium operations.
- The company plans significant investments in mining projects in 2024 and 2025.
Codelco, the world’s largest copper miner, has begun to reverse its downward trend in production, according to Chairman Maximo Pacheco.
The state-owned Chilean company has experienced an increase in output in both August and September, which Pacheco credits to improved operational stability following disruptions that led to the lowest output in decades. Production rose by about 5,000 tons year-on-year in August and 6,000 tons year-on-year in September.
Growth and strategic partnerships
Pacheco expressed confidence that Codelco will meet its production targets for 2024, expecting this year’s output to surpass 2023 levels despite a year-to-date decline of 8.6 percent as of July.
The company’s focus remains on improving its mining operations and expanding through partnerships with leading global mining firms. Codelco recently acquired a stake in Teck Resources’ Quebrada Blanca mine and signed a lithium agreement with SQM as part of its growth strategy.
The Maricunga lithium project, a key initiative in Codelco’s diversification plans, has attracted interest from multiple prominent mining companies. Codelco aims to select a partner for the project by early 2025, a move that is expected to bolster its lithium capabilities despite current market challenges.
Additionally, several parties have shown interest in building a new copper smelter in Chile, with a proposed capacity of one million tons per year. According to a report by Mining.com, Codelco will supply copper concentrates and buy the output, although it will not necessarily own a stake in the smelter.
Investment and future prospects
Codelco has ambitious capital expenditure plans, with $4.7 billion allocated for 2024 and nearly $6 billion for 2025. These funds will support numerous mining projects as the company works to maintain its standing as a major copper supplier in a highly competitive market.
Despite recent challenges, Pacheco emphasized the importance of continued investment to secure future growth and meet the rising global demand for copper.
He added that guidance for 2025 production levels would be published later this year, indicating optimism for continued improvement. Pacheco underscored the company’s commitment to “do everything needed” to ensure that production continues to recover and to meet the pressures of a market with growing demand for copper.
