Chilean state-run Codelco is intensifying its efforts to boost copper production as it aims to meet its 2024 targets, according to two sources and an internal document. This push comes after a challenging first half of the year, during which the company faced significant operational hurdles.
Key Highlights:
Production Goals:
Codelco, the world’s largest copper producer, aims to close the year with approximately 1.331 million metric tons of copper, representing a 0.5% increase from last year and aligning with the lower end of its target range.
The official annual target for copper production is set between 1.325 million and 1.352 million tons, with the upper limit reduced from 1.39 million tons in July.
Recent Performance:
An internal memo indicated that Codelco’s October output was 2.9% above target, marking a significant improvement. This suggests actual production could be close to 120,000 tons for the month, exceeding the planned 116,500 tons.
Official production data is expected to be released in the coming days.
Challenges Faced:
Codelco has struggled with production due to construction errors at key mines, accidents, and declining ore grades, even as global demand for copper continues to rise.
The company experienced a tough start to the year, including delays at the Rajo Inca project and a tragic incident involving a truck driver at Radomiro Tomic.
Optimistic Outlook:
Despite the challenges, Codelco’s leadership has become more optimistic about meeting annual targets. Chairman Maximo Pacheco noted that October was the company’s best month of the year thus far.
Key mines like El Teniente are reportedly performing ahead of schedule, while Salvador is lagging. The Chuquicamata mine is on track to meet expectations.
Final Quarter Requirements:
To achieve its goals, Codelco would need to produce over 400,000 tons of copper in the fourth quarter, which represents a 20% increase compared to the third quarter.