The world´s leader in copper production, Codelco, wants to mitigate its overall production decline by investing $720 million to improve operations at its Chuquicamata copper mine.
In a document posted on the Environmental Assessment Service, it said that the Chilean state-owned copper miner wants to modernize the original Chuquicamata copper mine and reach a production rate of 140,000 metric tons per day.
In the impact statement submitted to the authorities, Codelco said that the proposed changes will not alter the extraction and processing speeds originally authorized for the project. It doesn´t extend the life of the mine either.
Codelco´s new CEO Ruben Alvarado aims to ramp up production levels and end the year with 1.315 million metric tons of copper, which is the lower end of the expected range this year.
For 2024, Alvarado expects production to increase to 1.34 million metric tons.
In its latest results, Codelco dropped its annual production forecast of 1.31-1.35 million tonnes from the previous forecast of 1.35-1.45 million tonnes. This is the lowest production level the company has seen in a quarter-century.
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Chuquicamata is one of the world’s largest open-pit copper mines, located in the Atacama Desert of northern Chile.
The mine is situated near the city of Calama, about 1,650 kilometres north of Santiago. Chuquicamata has been a significant copper producer for many decades and has played a crucial role in the development of Chile’s mining industry.
The mine was initially developed by the Guggenheim family in the early 20th century and later came under the control of the Chilean government. It has undergone several expansions and modernizations over the years to increase its production capacity. The open-pit mine is known for its immense size and depth, and it has been a major source of copper for global markets.
In recent years, there has been a transition from open-pit to underground mining at Chuquicamata to access deeper ore deposits.
Copper demand is set to increase in the upcoming years as it is indispensable in the development of carbon-free technologies, serving a critical role in electrical conductivity and power transmission. It enables efficient electricity generation and distribution which is essential for renewable energy systems such as solar panels and wind turbines.
Its use in electric vehicles, batteries and energy-efficient technologies further positions copper as a vital element in the global transition to a low-carbon economy.
In addition to Codelco, notable copper producers include Freeport McMoRan Copper & Gold Inc. (NYSE: FCX), boasting a production of 1.3 million metric tons last year. BHP Group Ltd (NYSE: BHP) closely follows, matching Freeport’s production quota.
Grupo Mexico secures the fourth position, with its subsidiary Southern Copper, which entered a partnership with BHP in 2022, contributing an additional 1.13 million metric tons to global copper production.
