Codelco’s copper output increased slightly in 2024, rising by 3,000 to 4,000 metric tons compared to 2023. Chairman Maximo Pacheco expressed optimism about reaching production targets, especially the goal of 1.7 million tons by the end of the decade. Additionally, Codelco is expanding into lithium production with plans for joint ventures and project developments in Maricunga and the Atacama salt flat.
In 2024, Codelco, the largest copper producer globally, announced a modest increase in its copper output compared to the previous year, as reported by Chairman Maximo Pacheco in a recent interview with Diario Financiero. The production rose by approximately 3,000 to 4,000 metric tons, reaching 1.325 million tons in 2023. Pacheco emphasized that the company had successfully navigated a production valley, expressing optimism for a rebound to 1.7 million tons by the end of the decade. Despite earlier challenges, including construction delays and accidents, Codelco managed to boost its output significantly in December with production exceeding 160,000 tons.
Looking ahead, Codelco is poised to explore opportunities in the lithium sector, with Pacheco anticipating binding offers from potential joint venture partners concerning the Maricunga lithium project by the first quarter of 2025. Codelco has been assigned a leadership role in advancing lithium production, as Chile ranks as the second largest lithium producer globally. The state-owned miner plans to initiate construction at Maricunga by early 2027, aiming for production commencement in 2030. Additionally, Codelco is set to collaborate with SQM to extract lithium from the Atacama salt flat, having nearly completed contractual compliance conditions.
Codelco, the state-owned copper mining company in Chile, has faced significant hurdles in recent years, including a decline in copper output to a 25-year low due to various operational challenges. The company is now focusing on revitalizing its production capabilities while also diversifying into lithium extraction, following government directives to enhance the country’s role in the global lithium market. This diversification reflects Chile’s status as a major player in lithium production and Codelco’s strategy to capitalize on this emerging sector.
In summary, Codelco’s slight increase in copper production in 2024 marks a positive turnaround following years of operational difficulties. The company’s commitment to reclaiming its production peak by 2030 is paired with strategic expansions into lithium extraction, reflecting the evolving demands of the global minerals market. The expected joint ventures and projects could further bolster Codelco’s position in the lithium sector, enhancing its overall prospects as a state miner.
Original Source: www.investing.com
