China to Introduce Resource Tax at 'Proper' Time

April 6 (Bloomberg) -- Chile will revise more than $10 billion of projects to expand output at Codelco, the world's largest copper producer, amid the government's need to spend cash on rebuilding roads and bridges after a Feb. 27 earthquake.
The 8.8-magnitude temblor that caused as much as $30 billion in damage across central and southern Chile requires the government to reassess &quot;how resources are assigned to different companies, including Codelco,&quot; Mining Minister Laurence Golborne said yesterday in an interview in Santiago.
A delay to a pipeline of projects at Codelco may prolong a shortage of the metal used in power cables and electrical wire that prompted prices to double last year. The government will look for &quot;creative&quot; ways to raise cash for projects, Golborne said, though selling a minority stake in Codelco isn't planned.
&quot;We will have to take up the most profitable projects first and the least profitable ones afterwards,&quot; he said. &quot;When resources are scarce and there are multiple necessities, we need to prioritize.&quot;
The government of billionaire Sebastian Pinera, which took office in March, will respond to a petition from Codelco for financing in June, Golborne said. Copper for May delivery fell 0.4 percent to $3.6170 a pound on the Comex in New York.
Financing Reconstruction 
Chile may have a plan in place by the end of this week to finance the reconstruction following the earthquake, Deputy Patricio Melero told reporters yesterday in Santiago. The plan will include the sale of state assets and higher corporate taxes, Finance Minister Felipe Larrain said today.
Companies such as BHP Billiton Ltd. and Rio Tinto Plc &quot;can rest easy that the royalty that they have is always going to be respected,&quot; Golborne said.
Several projects Codelco plans to develop are &quot;necessary&quot; to maintain the company's competitiveness and production levels, Golborne said.
Codelco is expanding its Andina, El Teniente and Radomiro Tomic copper mines, Chief Executive Officer Jose Pablo Arellano said yesterday. The company may also decide later this year to go ahead with its Ministro Hales project, Sergio Jarpa, head of Codelco's Norte division, said Feb. 24.
Codelco said its goal of increasing production &quot;is not at risk&quot; from the earthquake, which temporarily cut power supplies in central Chile. Output by the state-owned miner will increase by a &quot;moderate&quot; amount this year, Arellano also said.
Copper demand will increase this year, fueled by Chinese use of the metal along with an economic recovery in the U.S. and Europe, Arellano said. Costs will increase as the amount of copper contained in ore at Codelco's mines declines, he said.
Codelco will seek to raise debt and reinvest profit to spend a record $2.3 billion on mines this year, Arellano said. 
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