Chile's state-owned Codelco reported a modest increase in copper production for 2024, with output rising by 3,000 to 4,000 metric tons from the previous year. Although small, the production growth has raised hopes that the mining giant will stage a turnaround and help alleviate anticipated copper shortages by the decade's end.
"We crossed the production valley in 2024 and are ready to start 2025 on the upswing to retake the peak of 1.7 million tons of fine copper at the end of the decade," said Chairman Máximo Pacheco in an interview with the regional newspaper, Diario Financiero.
Preliminary data showed production reaching 1.329 million tons, compared to 1.325 million in 2023.
The company aims to achieve its production goals by extending the operational lifespan of its key mines, improving exploration efforts, and tackling infrastructure bottlenecks. Its ambitious plans involve significant investment, including increased capital expenditures to boost efficiency and output.
However, lower ore grades and operational challenges have strained its capacity. A 2023 rock collapse at the El Teniente mine—the world's largest underground copper mine—caused a 32% short-term drop in production, sending the company's output to a 25-year low.
Thus, expanding into lithium production when lithium prices have found their footing seems like a quality diversification.
The planned partnership with the domestic lithium producer SQM SQM to mine the Atacama salt flats has stalled, but Pacheco remains optimistic.
"We are very close to securing approval from the National Economic Prosecutor's Office, but it's a complex process involving legal, financial, and labor elements," he noted.
The joint venture with SQM, set to last until 2060, will see Codelco take a leading role in managing the partnership starting in 2031. The lithium industry is critical for the global transition to clean energy, making the partnership a multi-billion-dollar opportunity for both companies and a significant revenue stream for the Chilean government.
Meanwhile, Codelco continues to work to finalize a partner for lithium production at the Maricunga site, aiming to begin operations by 2030.
"We've worked intensively with them [strategic partners] on our database, site visits, and due diligence. We expect binding proposals during this year's first quarter," he concluded.
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