Santiago, Chile – Chile’s state-owned mining giant, Codelco, fell further behind its copper production targets in May, as revealed by an internal document reviewed by Reuters. This development underscores the ongoing challenges the company faces in its efforts to boost output from a 25-year low.
According to the document, Codelco produced 103,100 metric tons of copper in May, which is 8.6% below its target of 112,800 tons. For the first five months of 2024, the company produced a total of 484,500 tons, falling 6.1% short of its cumulative target for the period.
These figures have not yet been publicly released by Codelco, and the company has not responded to requests for comment. The shortfall in May comes after April’s production dipped below 100,000 tons for the first time in at least 18 years, indicating persistent operational difficulties.
The company’s struggles have been exacerbated by a fatal accident at its Radomiro Tomic mine in March, which led to a suspension of operations during the investigation. This incident has further hindered Codelco’s ability to meet its production goals.
In response to these setbacks, Codelco’s CEO has committed to increasing output in 2024, aiming to recover from the poor performance of the previous year, which was the worst in a quarter-century. This recovery plan includes a leadership shake-up and a focus on advancing key projects.
Among these projects is the Rajo Inca initiative, which aims to extend the life of Codelco’s smaller Salvador division. Additionally, the company plans to begin partial operations of an expansion at the El Teniente underground mine later this year, between October and December.
As one of the world’s largest copper producers, Codelco’s production levels are closely monitored by industry analysts and stakeholders. The company’s ongoing efforts to overcome its operational challenges and increase production will be critical in maintaining its significant role in the global copper market.
For further details, see the original report by Reuters.
