Cochilco Sees Chile Copper Output up 38 pct by 2020

SANTIAGO, Oct. 15 -- Rising mining investment in Chile over the next five years will lift the country's copper output more than 38 percent by 2020, influential state copper think tank Cochilco said on Wednesday.

    Cochilco's investment prediction indicates mining companies are growing more optimistic about Chile, the world's biggest copper producer, after last year's financial crisis forced them to suspend key projects and fire hundreds of workers.

    Cochilco said investment in copper mining could reach $39.4 billion in the 2009-2015 period, more than half of that from state-run, Codelco, the world's top producer of the red metal.

    New mining operations will increase copper output to 7.4 million tonnes by 2020 from 5.3 million tonnes in 2008.

    Production of copper concentrates will jump to 5.7 million tonnes in 2020 from 3.4 million tonnes now. Output of copper cathodes is seen declining from a high of 2 million tonnes in 2014 to 1.6 million tonnes in 2020.

    "The vigorous investment process will help compensate for the natural exhausting of current mining operations while increasing the volume of global production," Cochilco said in a release.

    Investments worth $3.8 billion are seen in gold and silver mining between 2009 and 2015, developed mostly by Canada's Barrick Gold (ABX.TO: Quote) in its Pascua Lama and Cerro Casale projects.

    The main copper projects planned to start running by 2015 are Antofagasta Mineral's Esperanza mine and Los Pelambres expansion, and Codelco's Andina mine expansion. Others include BHP Billiton's (BHP.AX: Quote) (BLT.L: Quote) Escondida mine expansion and Anglo American (AAL.L: Quote) Los Bronces mine upgrade.

    Cochilco's report was prepared using information on project currently being built and others likely start construction by 2015.

    (Source: Reuters)