Chile copper giant Codelco profits surge on higher metals prices
SANTIAGO – Pre-tax profits for the world's largest copper producer Codelco surged to $7.4-billion in 2021 from $2.1-billion a year earlier, boosted by high global prices for the widely used metal, the Chilean state mining company said on Friday.
Copper prices jumped last year and some analysts see a new supercycle for the red metal as demand rises for its use in electric vehicles.
Codelco, which turns over its profits to government coffers, reported that it produced 1.618-million tonnes of copper at its own mines in 2021, in line with output a year earlier.
Adding production from its stakes in Freeport's El Abra and Anglo American Sur, total copper production rose to 1.728-million tonnes.
Cash costs increased 2.6% to $1.327 per pound of the metal, Codelco CEO Octavio Araneda said during a virtual press conference.
"This was mainly due to external effects, higher input prices that towards the end of 2021 began to put pressure on the industry's operating costs," he said.
Araneda said fallout from Russia's invasion of Ukraine is not expected to significantly affect Codelco's sales as those countries are not important buyers of the company's copper.
CFO Alejandro Rivera forecast global prices for copper should remain near current levels this year barring a major escalation of the conflict.
Important maintenance work at Codelco's Chuquicamata smelter is not expected to hit overall production, but it will affect cathode output, Araneda said.
He added that 2022 total copper production should be similar to 2020 and 2021 output.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers
VISIT SHOWROOM
Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
