Codelco to provide alternatives for Salvador expansion
CEO of the state-owned company is also to deal with the Chuquicamata Division standing
Concern exists among the congressmen as regards to the future of Salvador Division, the Codelco’s mine with lowest production.
For this reason Thomas Keller, CEO of the state-owned copper producer, will provide today some guidelines to the mining and energy commission of the Senate regarding the future of this Codelco Division.
Some sources close to the company explained that the presentation will include the two options the company management is dealing with. The first one refers to continue analyzing the San Antonio Oxides Project that was temporarily withheld because of the steep energy costs.
The second approach focuses on developing an open pit operation for the mine that today is an underground operation. The latter would require a more than US$1,000 million investment and would allow the deposit to extend its useful life for the following 20 years.
Besides , as the workers unions of Salvador explain, the open pit operation could increase the annual production to 200,000 tons of copper. Currently the Division is producing 62,000 tons per year.
Additionally, Keller will also refer to the Chuquicamata standing. The Division reported losses in 2012 and the situation was already cleared up by the CEO who asserted this is just circumstantial because of the payment of the collective bargaining bonus – CH$16.8 million per worker – and the retirement program severances agreements which altogether caused an accounting loss above the US$500 million.
Source: El Mercurio
