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Codelco expects flat copper output amid project delays

Created at 15 Jul · 3:54 PM1 source↑ Market-relevant
IN SHORT

Chilean state-owned copper giant Codelco anticipates its production levels will remain similar to current figures in the coming years, according to Chairman Bernardo Fontaine. The company is working to overcome production slumps from recent years, with structural projects facing unexpected delays and cost overruns.

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Key Numbers

1.7 million metric tonsCodelco's 2030 production target
1.33 million tonsCodelco's 2023 production
49%Codelco's stake in El Abra mine
$7.5 billionFreeport McMoRan's planned expansion at El Abra
20,000 metric tonscopper improperly included in 2025 report

Who's Involved

Bernardo Fontaine
Chairman of Codelco
Codelco
Chilean state-run copper miner
Freeport McMoRan
Majority owner of El Abra copper mine
Cochilco
Chile's copper agency

↳ Why This Matters

Codelco is the world's largest copper producer, and its production levels significantly influence global copper supply and prices. The company's struggles to increase output due to project delays and cost overruns could impact the market's ability to meet rising demand, particularly from the energy transition sector.

Key facts

  • Codelco anticipates its copper production will remain flat in the coming years.
  • The company's production fell to two-decade lows in 2022 and 2023.
  • Last year's output from Codelco's own mines was 1.33 million tons.
  • Structural projects aimed at addressing declining ore grades have encountered delays and cost increases.
  • Investment in the El Abra copper mine, where Codelco has a 49% stake, is being considered.
  • Cochilco will release a preliminary audit of Codelco's production in September.

Chile's state-owned copper giant Codelco expects its production levels to remain largely unchanged in the coming years, according to Chairman Bernardo Fontaine. This projection comes as the company grapples with production challenges and delays in its structural projects aimed at counteracting declining ore grades.

Last year, Codelco's own mines produced 1.33 million tons of copper, a significant drop from previous periods and far below its target of 1.7 million tons annually by 2030. Fontaine indicated that the company might focus investment on the El Abra copper mine, in which Codelco holds a 49% stake alongside majority owner Freeport McMoRan, which has a substantial expansion project planned.

Chile's copper agency, Cochilco, is set to release a preliminary audit of Codelco's production figures in September, following scrutiny over potential inaccuracies in a 2025 production report.

Frequently asked questions

Codelco's target is to produce 1.7 million metric tons of copper annually by 2030.

Codelco's production from its own mines in 2023 was 1.33 million tons.

El Abra is a copper mine where Codelco holds a 49% stake, and Freeport McMoRan has a $7.5 billion expansion project planned, making it a potential focus for Codelco's investment.

Chile's copper agency Cochilco is expected to release a preliminary audit of Codelco's production in September.

What Happens Next

01Cochilco to release preliminary audit of Codelco's production in September.

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How It Developed

Codelco expects copper production to remain similar to current levels in the coming years.
The company is working to recover from production lows in 2022 and 2023.
Last year's production at Codelco's own mines was 1.33 million tons.
Structural projects designed to counter declining ore grades have faced unexpected delays and costs.
Chairman Bernardo Fontaine suggested focusing investment on the El Abra copper mine, where Codelco holds a 49% stake.
Chile's copper agency Cochilco will release a preliminary audit of Codelco's production in September.

Sources

T1
Chile's Codelco expects flat copper output in coming years, chairman saysReuters

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