Codelco plans to extend to 20 years the operation of its site Salvador
Ivan Arriagada, vice president of administration and finance of the state company, revealed that the Rajo Inca project will double the current production of the mine located in Region III
All analysis conducted by Codelco’s administration, led by Thomas Keller, suggest that the Salvador division will continue to operate for a long time.
In the state company they believe that the Rajo Inca Project that transforms the site of underground open-sheds interesting numbers that enable the mine to continue operating in Region III.
“In Salvador we work to get the best results, and in that sense is very important which is the projected growth and development that has. We look in particular Rajo Inca Project, which is auspicious, but is in fine early stages, “says the Codelco’s vice president of administration and finance, Ivan Arriagada, under Exponor 2013.
According to the executive, the analysis that have been conducted regarding this initiative can project the extension of Salvador’s life in about 20 years.
This would be a greater definition to a division that now operates with total costs around U.S. $ 4 per pound of copper,whose performance is estimated through 2018.
Also, for Codelco to continue operating in Region III is relevant, considering the amount of people who depend on the division and proved reserves that have the reservoir.
Arriagada precise Rajo Inca will double the current production site, which is around 50 000 tons per year. “We’re talking about production levels close to 100 000 tons,” he says.
With this, it confirms the intention of Codelco to favor the development of Rajo Inca over San Antonio Oxides. This initiative, which provided for an investment of U.S. $ 1,000 million, was suspended by the copper company due to high energy costs involved.
But Arriagada is cautious when estimating dates to carry out the project. He explains that the open pit option recently has preliminary studies. In a presentation to investors of the company in the first quarter, the company stood at his schedule Rajo Inca projects, entering into operation by 2019.
Lower costs
One of the most relevant policies Codelco is implementing this year is its cost containment plan. Already in the first quarter, the company managed to stop the escalation of 40% who scored the expenses in 2012. This meant that the direct cost to cathode (C1) came to U.S. $ 1.70 per ton, lower than the last quarter of 2012. “We’re starting to see the results of some of the actions that have been taken in terms of productivity and cost. We had a very good first quarter in that sense, and we have seen that this trend has continued during the second quarter, “says Arriagada.
Vice President of Administration and Finance notes that the projections for this year point to an increase in production compared to the 1.64 million tons of copper as of 2012.
Source: El Mercurio
