Chile’s state-owned Codelco needs more partnerships with private miners to halt its copper production decline, chairman Bernardo Fontaine told Santiago radio station Duna on Monday.
The company has invested $32 billion (C$45.2 billion) over eight years, yet annual output is expected to reach only about 1.2 million tonnes this year, down from 1.7 million, he said. Codelco lacks the capital and management capacity to develop about 10,000 sq. km of unexploited mining concessions, he added.
Fontaine called for changes to legislation governing Codelco’s partnerships, saying lengthy approval processes deter potential investors. He put its recovery objective at average annual production of about 1.3 million tonnes, following a reassessment of earlier forecasts he considered excessively optimistic.
Output probe
The push follows production irregularities covering 2024 and 2025 that inflated reported output by 42,100 tonnes, according to Codelco’s preliminary findings. The company is assessing a potential inventory adjustment of $120 million to $140 million, with audits continuing.
One model is the Tovaku partnership with Pucobre (Santiago: PUCOBRE), whose $870-million copper project won environmental approval on Oct. 23. Pucobre owns 60% and will finance development and construction, while Codelco contributes mining concessions for its 40% stake.
The partners are targeting production in 2030, with planned annual output of 46,000 tonnes.
Source: www.northernminer.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
