Chuquicamata contributes 2% of the profits from Codelco
In 2010 the site accounted for 26% of the profits and today is the third task of the company with the highest cost
Chuquicamata, the most emblematic site of Codelco, has slowly been losing relevance in the overall numbers of state company.
In only three years the division went from 26% of the profits, whereas the comparable private-company profits with just 2%. Thus, while in 2010 Chuquicamata generated a result of U.S. $ 491.9 million at September this year the amount was only $ 15.7 million.
In production has also decreased the importance of the site on the total volume generated by the company. An example of this is the decline of 44% on this item has scored in eight years. In 2004 the task located in Calama exhibited copper production of 692 thousand tons, volume fell to 356 thousand tons last year.
Also, today the world’s largest open pit mining represents 22% of global mining production. Eight years ago reached 40%.
Regarding costs, according to the last presentation to investors performed by Codelco, as of the first half the direct cost (C1) Chuquicamata rose above U.S. $ 1.90 per pound of copper.
Thus, the task is positioned as the third with the greater cost among its divisions, being surpassed only by Salvador and Gabriela Mistral.-
In Codelco claim that a decade ago the C1 site was at U.S. $ 0.42 per pound, then one of the most competitive in the industry.
Reasons for the decline
There are several factors that have led Chuquicamata to lose relevance between state company operations.
On the one hand the fall appears in ore grade copper-rate is achieved by extracting every ton of material-for the past 10 years. Thus, if in 2003 this item was 1.02% in 2013 fell to 0.68%.
The state company say that this has led, to travel to extract copper is much larger, causing trucks’s displacement for journeys exceeding 11 kilometers.
Also the higher cost of the site has significantly risen, affecting profits pit. An example is the workplace, where Chuquicamata to produce 356 000 tons has 6,760 workers themselves, unlike other tasks as Radomiro Tomic that produces more over one thousand employees.
Finally, the emergence of two new sites, Ministro Hales and Gabriela Mistral, has downplayed Chuquicamata’s participation in the overall rate of production of the state company.
Source: El Mercurio
