Codelco Says to Develop Key Copper Projects Alone

SANTIAGO Aug 4 (Reuters) - Chile's Codelco [CODEL.UL], the world's top copper miner, has no interest in forming joint ventures to develop its key mining projects, CEO Diego Hernandez said on Wednesday.

Codelco wants to spend $15 billion in five years to revamp century-old mines and exploit new deposits as part of its plan to lift output to around 2 million tonnes of copper per year.

The state giant has benefited from high copper prices that helped boost investment and raise output to more than 1.7 million tonnes in 2009, after years of dwindling output.

"Under the current scenario we are not interested in sharing our projects," Hernandez said in a statement during a visit to China. "However, there are projects in which we are not too competitive, because they are medium-size projects. In those projects we will certainly need others to develop them."

Center-right President Sebastian Pinera has backtracked on campaign pledges to sell part of Codelco as a way to improve its efficiency. Any move to open Codelco to private capital is likely to face fierce opposition from powerful mining unions and center-left lawmakers who control the senate.

Hernandez, who was meeting clients in Shanghai, also said the company would continue to use the London Metal Exchange as its benchmark in copper sales. Although, he said, the company could analyze the Shanghai Futures Exchange as an option in the future, depending on the world influence of the yuan and other factors.