Codelco’s copper output has seen a slight increase in 2024, reported by Chairman Maximo Pacheco, who highlighted production growth from the previous year. The company is also poised to enter the lithium market as part of its strategic expansion, with significant developments expected by 2025. Despite past challenges, Codelco aims to enhance its production output in both sectors by the end of the decade.
In a recent interview with Diario Financiero, Maximo Pacheco, Chairman of Codelco, announced that copper production at the company slightly increased in 2024 compared to the previous year. Specifically, output grew by approximately 3,000 to 4,000 metric tons from the 1.325 million tons recorded in 2023. Pacheco stated, “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,” noting that production in December exceeded 160,000 tons.
Codelco, recognized as the largest copper producer globally, has faced considerable challenges including infrastructure issues at key mines, mining accidents, and declining ore quality, which have hindered output. Despite earlier production setbacks leading to a year-to-date shortfall by May, the company managed to accelerate production levels during the latter part of the year in an effort to meet its goals.
Looking ahead, Pacheco expressed optimism regarding Codelco’s entry into the lithium sector, indicating that the company anticipates receiving significant joint venture proposals for its Maricunga lithium project in early 2025. Codelco is seeking to expand its role in the lithium market, as directed by President Gabriel Boric in 2023. As the second-largest lithium producer globally, Chile is positioned for further growth, although Codelco’s lithium ventures are still in nascent stages with production slated to begin in 2030 following construction starting in 2027. Furthermore, Codelco is pursuing a joint venture with SQM to exploit lithium in the Atacama salt flat, with Pacheco confirming that they are near compliance for contract approval.
Codelco, a state-owned copper mining company based in Chile, holds the title of the largest copper producer in the world. As the nation navigates through a myriad of challenges such as declining ore grades and infrastructural dilemmas, Codelco’s attempts to bolster production have been vital for its long-term business sustainability. The company’s ambitions extend beyond copper, as it aims to explore lithium mining following recent governmental shifts prioritizing the expansion of mineral extraction in the country, particularly given Chile’s significant lithium reserves.
In summary, Codelco has reported a modest increase in copper production for 2024 and is positioning itself for future expansion in the lithium sector. While facing various operational challenges, the company has demonstrated resilience through increased output towards the end of the year. Looking forward, Codelco’s plans for partnerships in lithium production align with national goals for resource development, potentially aiding its quest for growth stability amidst global demand fluctuations.
Original Source: www.investing.com
