Codelco lifts copper output in boost to tight market
Codelco’s sales surged last quarter as the world’s biggest copper supplier ramped up production just as rebounding economies sent prices of the metal to record highs.
The State-owned producer has navigated pandemic restrictions in Chile better than some of its private-sector rivals this year, registering an almost tenfold jump in contributions to State coffers. That’s good news for a nation seeking funding for pandemic relief and policies to counter inequalities after mass protests in late 2019.
Codelco is also reaping the benefits of a multibillion-dollar overhaul of its aging deposits, bringing some relief to tight global supplies. Copper futures have headed back toward all-time highs in the past week or so as traders focus on the alleviation of virus-related constraints in key industries.
Codelco’s second-quarter sales jumped 79% to $5.36-billion, according to financial results released via the securities regulator. Pricier inputs and exchange rate fluctuations pushed up costs in the first half of the year.
The company reported a steeper-than-expected 7% production increase in the first half. While it didn’t give a quarterly breakdown, calculations using previously reported results show April-June output at 410 000 t, also up 7%.
In the first half of the year, Codelco’s Hales, Teniente, Salvador and Radomiro Tomic mines all posted gains thanks to improved ore quality, offsetting declines at Chuquicamata and Gabriela Mistral. In project development, Codelco has reached 97% completion at an investment in Andina as it moves forward with other works at Teniente and Salvador.
Codelco also managed to navigate a slew of wage talks in Chile, although the company is facing the possibility of its first strike in the current cycle after workers at its Andina mine rejected the company’s final wage offer on Thursday.
Comments
Research Reports
Projects
Latest News
Showroom
Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...
VISIT SHOWROOM
FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...
VISIT SHOWROOM
Press Office
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
