Codelco reported a slight increase in copper output for 2024, with a modest production rise attributed to a focus on recovery from significant challenges faced in the prior years. Chairman Maximo Pacheco expressed optimism about future output and progress in the lithium sector, highlighted by impending joint ventures aimed at expanding production capabilities.
SANTIAGO (Reuters) – In an interview with Diario Financiero, Chairman Maximo Pacheco announced that Codelco, the premier global copper producer, realized a modest increase in copper output in 2024 compared to the previous year. The production rose by 3,000 to 4,000 metric tons, reaching a total of 1.325 million tons in 2023. Pacheco expressed optimism regarding future production forecasts, stating, “We crossed the production valley in 2024 and are ready to start 2025 on the upswing to retake the peak of 1.7 million tons of fine copper at the end of the decade,” while noting December’s production exceeded 160,000 tons.
Codelco has faced challenges in revitalizing production since reaching a 25-year low, necessitating a concentrated effort in December to meet its goals for 2024. Various setbacks, including construction delays, accidents, and diminishing ore grades, plagued the company. Despite falling short of production targets early in the year, exacerbated by tragic worker fatalities, Codelco made a substantial push to improve output as the year concluded.
Looking ahead, Chairman Pacheco indicated the company anticipates receiving binding offers from prospective joint venture partners for its Maricunga lithium project in early 2025. Following directives from President Gabriel Boric to spearhead the lithium industry’s expansion, Codelco is embarking on this venture from ground zero, intending to commence construction in Maricunga in early 2027 and initiate production by early 2030. Furthermore, the company has initiated a joint venture with local lithium producer SQM to exploit mining opportunities in the Atacama salt flat, with Pacheco affirming that they have nearly completed the compliance requirements necessary for contract approval.
Codelco’s significance in the global copper market stems from its status as the largest copper producer, pivotal for both national and international supply chains. The company has been experiencing production challenges since reaching lows not seen in decades, necessitating a transformation to address these issues effectively. The growing demand for lithium as a fundamental component in electric vehicle batteries and renewable energy solutions has prompted Codelco’s entry into the lithium sector, marking a strategic pivot to diversify its operations and capitalize on emerging market opportunities.
In conclusion, Codelco’s slight increase in copper production for 2024 marks a positive trend following years of challenges. With aspirations for substantial growth leading into 2025 and strategic ventures into the lithium market, the company appears poised to enhance its production capabilities. The forthcoming developments in the Maricunga lithium project and the joint venture with SQM signal Codelco’s determination to innovate and adapt within an evolving resource landscape.
Original Source: www.investing.com
