Codelco Reports Slight Increase in Copper Production for 2024

In 2024, Chile’s Codelco reported a slight increase in copper output, rising by 3,000 to 4,000 metric tons from the previous year, while also planning a significant entry into lithium production to meet rising global demands.

Chile’s Codelco, the largest global copper producer, reported a slight increase in copper production for 2024, with output rising between 3,000 to 4,000 metric tons from the previous year, as stated by Chairman Maximo Pacheco during an interview with Diario Financiero. This brings the total production to approximately 1.328 million tons. Codelco has overcome significant challenges, including a 25-year low in output and production setbacks caused by construction issues at key mines, work-related accidents, and declining ore grades. Preparations for a more productive 2025 are underway, with December’s production exceeding 160,000 tons.

Moreover, Codelco is diversifying into the lithium sector following a directive from President Gabriel Boric, who has tasked the company with leading an expansion of this critical industry. In 2025, Codelco anticipates receiving binding offers from potential joint venture partners for the Maricunga lithium project, aiming to initiate construction by early 2027 and production by early 2030. Additionally, the company is establishing a joint venture with SQM to extract lithium from the Atacama salt flat, having largely satisfied compliance obligations needed for contract ratification.

Codelco, officially known as Corporación Nacional del Cobre de Chile, is the foremost producer of copper globally, significantly affecting both the Chilean economy and international copper supply. The company has faced various operational obstacles in recent years, including falling ore grades, which have impacted output levels. With the Chilean government focusing on expanding the lithium sector, Codelco’s entry into lithium production reflects strategic growth and adaptation in response to global market demands for this essential commodity, primarily used in batteries for electric vehicles and other technologies.

In summary, Codelco’s slight increase in copper production for 2024 marks a positive trend after overcoming numerous challenges. The company’s strategic pivot into lithium production indicates its commitment to expanding its role in critical minerals, positioning itself to meet future market needs. With ambitious plans for joint ventures and new projects, Codelco aims to bolster its production capacity as it prepares for a return to peak levels by the end of the decade.

Original Source: www.investing.com