A maximum annual cap program for Codelco will be set up
Mining Minister noted that all projects that have been analyzed are profitable.
In a double date yesterday Mining minister, Aurora Williams, and Finance Minister, Alberto Arenas, explained the scope of the Codelco capitalization law before the commission of Mining and Energy of the House of Deputies.-
According to what he explained, several goals were set to Codelco.The first is to meet the investment of $ 3,500 million and $ 4,500 million for this and next year, respectively.-
The Secretary of State emphasized the strengthening of the role of shareholders, with the powers of the “mandate” and “assessment” of reports that are necessary.-
As to how to disburse the $ 4,000 million committed by the Executive for the mining, the finance minister said there will be a benchmark program to capitalize on annual maximum amounts that will be consistent with their financing needs and also fits the investment cycles are defined.
He also said that “if there is a slower execution or project is removed from the Business and Development Plan, should scale down the committed financing”.
Codelco’s Profitability
The Mining Minister said the funding that the government is committed to five years, although the implementation of the projects will take more than that time.-
“If structural projects are not performed, production will decline sharply, reaching 2023, with 540 000 tons, about 70% less than today,” said Williams.-
Among the projects included Chuquicamata Underground, RT Phase II Sulphides, Rajo Inca Salvador, Andina 244 and the Nuevo Nivel Mina El Teniente.-
With regard to profitability, according to data released by Cochilco, all these initiatives have attractive yields, which were calculated with copper prices below the levels present directives.-
On the control elements, Williams explained that 60 days from the approval of the law, standards shall be set to meet and in late March the company must submit a compliance report, for the Executive to set the amount to be invested.-
Source: Diario Financiero
