Chile's Codelco Unveils Austerity Plan after Cutting Copper Output Forecast

SHANGHAI, Dec 26 (SMM) - Chile's Codelco, the world's largest copper producer, said on Friday December 23 that it will launch an austerity plan aimed at improving short-to-medium-term earnings as well as optimising production and investment by 2027.

The state-owned miner cut its production target for 2022/23 in October due to lower prices and lower ore grades, saying its lower output levels would persist for several years.

The company forecasts the copper output to stand at 1.435-1.465 million mt in 2022, down from a previous estimate of 1.49-1.51 million mt.

In a statement issued on Friday, Codelco’s Chief Executive Officer Andre Sougarret, ordered an immediate austerity plan to cut spending on materials, third-party services and events.