Metals News
Bachelet prompts to resuscitate Codelco
industry news
08:57AM
Sep 24,2014
Source:SMM

Author: Paul Ploumis23 Sep 2014 Last updated at 08:27:06 GMT

SANTIAGO (Scrap Monster):Based on the warnings provided by the executives of the company that the production capacity of the company might turn into half in six years, President has already given the copper giant the permission to spend 23.5 billi0on dollars for the re authorization of primitive mines who are running low in copper, along with that the President has offered to sell 4 million dollars of the bond in order to provide the company additional funds.

Along with the increase in tax to pay for the initial outlays of the education system, Bachelet also ensures to revive Codelco, as it is very important in order to address the growing demand from the middle class for better public services. Copper contributes towards 20 percent of general revenue and 60 percent of exports from the country.

A former mining minister, Santiago Gonzalez stated that, the government would be taking a vital risk, which is very much important for the country and its tax revenue. He also stated that, by chance if Codelco fails to make these investments, the production rate would most probably decline for the company.

As the price of copper continues to decline, the production cost at Codelco has been increased twice in the duration of last five years. The tax revenue which was collected from the company declined to 1.8 percent during the beginning of the year to 741 billion dollars.

 

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