Codelco Surpluses Touched New Peak, Driven by Boosted Output

SEATTLE (Scrap Monster): Codelco- the state owned copper producer reported surpluses of $1,627 million in the initial quarter of the current year. This is the highest level in over a decade. The company produced more metal and achieved notable cost reduction during the quarter. The high metal prices too supported the quarterly results.

Codelco more than doubled its output in Q1 2021. The output from Chilean mines surged higher by 7% over the previous year to total 386,000 metric tons. The output had amounted to 361,000 metric tons in first quarter 2020. The quarterly sales soared to hit $4.65 billion. The increased mine output from Hales, El Teniente, Chuquicamata, Salvador and Radomiro Tomic mines offset 40% decline in output from Gabriela Mistral. 

Commenting on the future outlook, Octavio Araneda, Chief Executive Officer noted that the company expects significant recovery in development of all its projects during the second half of the year. It will continue to focus on technological advancements to increase productivity and production, thereby transforming Codelco into a viable and more competitive company.

The expansion at El Teniente may face delays up to one year, on account of safeguard measures taken to contain spread of coronavirus. The ramp-up of Chuquicamata underground operations may also be delayed, he added.