Codelco caps worst year in quarter century with production drop

Codelco indicated copper output declined last quarter from a year earlier, as the world’s biggest producer of the metal strives to recover from mining mishaps and project delays.

Production for the last three months of the year was 358,000 metric tons, compared with about 384,000 tons in the fourth quarter of 2022. That’s based on calculations using full-year output disclosed by the Chilean state-owned behemoth in a session of a congressional commission this week. Codelco is scheduled to report its official results for last year in March.

Production is running at the lowest level in a quarter century following a series of setbacks at projects and mines that exacerbated the impact of declining ore quality after decades of underinvestment.

To be sure, Codelco’s fourth-quarter output was higher than the July-September period, and New Chief Executive Officer Ruben Alvarado is looking for a gradual recovery from this year.

The presentation delivered by finance director Olivar Hernández on Monday shows production at 1.324 million tons last year, 1.352 million tons this year, 1.522 million next year and getting back above 1.7 million by 2030.

(By James Attwood)

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