According to Webstock Inc., citing foreign media on February 7, a yet-to-be-published government decree indicates that the world's largest copper producer, Chile's state-owned mining company Codelco, has set a target to produce 1.391 million mt of copper this year. The decree also approves the 2025 budget.
The document shows that the company is striving to increase production from a 25-year low and has approved an investment of approximately $4.727 billion, consisting of $3.972 billion plus VAT.
In calculating its budget, Codelco estimated copper prices at $4.3 per pound and cash costs at $1.98 per pound, the document reveals. The company expects operating revenue of $22.23 billion and pre-tax net profit of $3.105 billion.
The 2025 investment is slightly higher than the company's 2024 investment of $4.6 billion. The investment is primarily focused on key mine projects dealing with low-grade ore.
If Codelco achieves its 2025 target, it will mark the second consecutive year of production growth for the company. In 2024, the company reversed a 25-year slump by producing 1.328 million mt, surpassing the 2023 production of 1.325 million mt.
Employees and company insiders stated that the strategies adopted by the company include delaying maintenance and reducing downtime. However, these strategies are difficult to sustain as the company continues to grapple with declining ore grades and delays in major mine renovation projects.
Codelco reported a consolidated EBITDA of $4.022 billion for January-September 2024 and is set to release its final annual financial results by the end of March.
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