Codelco prepares historic investment for 2015
Mining company will need U.S. $ 800 million from the state in 2015 and will invest nearly U.S. $ 6,000 million. The Plan could grow if deferred projects of this year are added.
In just 15-hours which elapsed between Thursday afternoon and Friday morning of last week, Codelco cleared two major questions for the future: defined its new executive President-Nelson Pizarro Contador-and also received a announcement expected for years: a long term capitalization plan by the State, its owner.
“We must redouble our efforts to show that this vote of confidence that has made the country in Codelco, through the President of the Republic, was deserved,” said chairman of the state company, Oscar Landerretche, when commenting on the announcement.
In the special document sent to the Government in March to explain the resource request to the State, Codelco posed three scenarios to Treasury: one without cap-forcing stop all projects-another with capitalization of up to $ 3,000 million, should be suspended some as Andina 244- and last one with $ 3,945 million for the entire period 2014-2018. The latter scenario was the only one allowed to advance all its structural projects, without being obliged to stop none and was the one approved by the government.
Clear that doubt, the corporation may intervene fully in the implementation of structural projects, which are already defined, as well as investment, debt and capitalization, year by year. According to an internal document from Codelco, which had PULSO access, the applicant will be year 2015.
According to the schedule of the state company, that year the company will invest U.S. $ 5.752 million, the highest ever recorded in the corporation. With those resources, the mining company will face at the beginning of the definitive works of Chuquicamata Underground-which should be adopted in the coming months and the continuation of the tasks in Nuevo Nivel Mina El Teniente, which are already underway.
To that it is added the approval of the first module of Radomiro Tomic Project Phase 2, which is timetabled to be approved in March 2015, and is estimated to cost U.S. $ 3.334 million. However, the time may vary, since the approval of the environmental impact is not yet received. –
To the structural basis investment projects, minor initiatives that are necessary to maintain the current production capacity at Codelco are added. The same schedule in 2015 states that Codelco will resort to financial market seeking U.S. $ 1.962 billion, while capitalizing requested from the State for that particular year is U.S. $ 800 million.
Lagged investments
To this historic plan implemented in 2015 by Codelco could be added projects corresponding run in 2014, but, since much of the year there was no clarity on the funding, have not yet been executed, leaving for 2015.
A sign to that effect recently gave the Vice President for Administration and Finance of the corporation, Ivan Arriagada, when he recognized that Codelco will invest $ 4,000 million this year. The plan earmarked U.S. $ 5,049 million for 2014.
Source: Pulso
