https://www.miningweekly.com

Chile's Codelco copper output, profit falls as costs rise

30th November 2018

By: Reuters

  

Font size: - +

SANTIAGO – Chile's Codelco, the world's largest copper producer, said on Thursday that mine output fell 3% in the first nine months of the year as ore grades sharply declined, leading to a 12% drop in pretax profit.

The state-run copper miner earned $1.42-billion pretax between January and September as production costs jumped 5% to $1.39 from the year-ago period, it said in a statement. Its mines produced 1.2-million tonnes of copper, with ore grades down 5% over the same period.

Chief Executive Nelson Pizarro cited several other major challenges in 2018, including Codelco's 18 contract negotiations with unionized workers.

"A higher copper price ... allowed us to partially mitigate the negative impact on profits from rising costs, as well as one-time costs derived from contract negotiations," Pizarro said in the third-quarter results statement.

The company has an ambitious, $40-billion, 10-year investment plan to combat declining ore grades, cut costs and boost productivity at its Chilean mines.

Pizarro said the planned upgrades were proceeding apace, with its flagship Chuquicamata mine overhaul approaching 70% completion after scaling back plans earlier this year.

Chile's government said in June that it would provide Codelco with $1-billion in "extraordinary" capitalization to help prevent its aging mines from running dry.

Codelco has also begun exploring its lithium holdings in Chile's Maricunga salt flat, and it continues to seek a partner to develop the asset, Pizarro said.

Edited by Reuters

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION