Codelco will continue to lead the global copper production by 2021
The state mining company must overcome the cost barrier and move forward with their structural projects
Codelco wants to achieve at all costs its target of 2.5 million tons of copper production by 2021 (in 2012 was 1,647,000 tons) and for that announced investments of U.S. $ 27 billion in their structural projects.
The path is not without its difficulties when one considers that the ore is down significantly (in the case of Codelco 10% in 2012 compared to 2011) and spending continues to increase.
On this last point, the State Company explained that in the past two years,costs production have risen by 57%, above the industry average, which was around 48%. “The cost structure has changed permanently,” has emphasized Thomas Keller, Codelco’s CEO.
However, the corporation estimated that 2021 will continue at the top of the global copper production firms.
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To achieve Codelco to remain the number one in the world, all projects must be going according to the descriptions. Looming as a great goal keeping up Andina expansion (U.S. $ 6,800 million) which has great environmental detractors, who argue about the impact on glaciers. Another barrier that the state company must overcome is finding a cost effective solution to the Chuquicamata and El Salvador operational continuity. Further back Codelco as appropriated in the presentation showed by Keller at the Finis Terrae University Monetary Club, in 2021, will come Freeport and Glencore-Xstrata both hovering around 2 million metric tons of fine copper. The position of this latter company will be strengthened by the merger and will displace BHP from its current third place among the world’s copper production companies. And not only before Glencore-Xstrata would lose ground, but also with the whole of Chinese companies.
By 2021 Canadian mining First Quantum would exceed copper production compared to Anglo American, Teck, KGHM and AMSA. According to what is stated by Codelco, AMSA would produce just over 500 metric tons of fine copper in 2021. However, Diego Hernandez, CEO of the Luksic Group’s mining branch, recently said that “if you look at 2020 or 2022, we should be producing 1,400,000 tons. We will have to decide on the way how we fund it. “
Hernandez encouraged some time ago that “as an industry we have to react, because our investments are at long term, and the outlook is not so auspicious for Chilean copper mining industry. We will remain the top producers for many years, but we will not remain the most competitive ones “and said that” between 2004 and 2011 copper production have not increased in absolute terms, and we have invested $ 35 billion just to maintain production “.
Source: Diario Financiero
