**Codelco Aims for Increased Copper Production in 2025**
SANTIAGO, Feb 7 – Codelco, the Chilean state-owned mining company and the largest copper producer globally, has set a production target of 1.391 million metric tons of copper for this year, as revealed in an unpublished government decree regarding its 2025 budget. The company is striving to recover from production levels that have reached a 25-year low and has approved investments totaling $4.727 billion for 2025, which includes $3.972 billion plus Value Added Tax.
If Codelco achieves its production goal, it would represent an increase from last year’s output of 1.328 million tons, sustaining the company’s efforts to boost production that has been affected by project delays, accidents, and declining ore grades. In its budget calculations, Codelco anticipates a copper price of $4.30 per pound and a cash cost of $1.98 per pound, projecting operating revenue of $22.23 billion and a pre-tax net profit of $3.105 billion.
The planned investment for 2025 is slightly above the $4.6 billion invested in 2024, primarily focusing on projects aimed at upgrading key mines to address the challenges posed by lower-grade ores. Achieving the 2025 target would mark the second consecutive year of increased production for Codelco, which managed to reverse its long-term production decline in 2024, surpassing the previous year’s output of 1.325 million tons.
However, employees and insiders have noted that the strategies employed, such as postponing maintenance and minimizing downtime, may be difficult to sustain as the company continues to face challenges related to lower ore grades and delays in significant mine renovation projects. Codelco reported a consolidated EBITDA of $4.022 billion from January to September 2024 and is expected to release its final financial results for the year at the end of March.
