SANTIAGO, Feb 7 (Reuters) – Chilean state miner Codelco, the world’s largest copper producer, is targeting production of 1.391 million metric tons of the red metal this year, according to an unpublished government decree approving its 2025 budget reviewed by Reuters.
The firm, which is battling to lift production off quarter-century low levels, has also authorized 2025 investments of $4.727 billion, made up of $3.972 billion plus Value Added Tax, the document showed. The copper production target, if hit, would mark an increase from last year’s 1.328 million tons and maintain the firm’s momentum as it looks to revive output that has been hit by delays to projects, accidents and declining ore grades.
In calculating its budget, Codelco forecast a copper price of $4.30 per pound and expects a cash cost of $1.98 per pound, the document showed. It expects operating revenue of $22.23 billion, leading to a pre-tax net profit of $3.105 billion.
The 2025 investment figure is slightly higher than the $4.6 billion the company invested in 2024. The investments mainly focus on projects to overhaul key mines to deal with lower grade ores.
If Codelco hits its 2025 target, it would mark the second consecutive year of increased output. The company was able to turn around its quarter-century production slump in 2024 after a mad dash at the end of the year pushed it past the 2023 figure of 1.325 million tons. Employees and company insiders said the strategies used, including delaying maintenance and reducing downtime, were hard to maintain as the company has still been struggling with lower ore grades and delays in major projects to revamp its key mines.
Codelco reported a consolidated EBITDA of $4.022 billion from January to September 2024 and will report its final financial results for the year at the end of March.
(Reporting by Fabian Cambero; Writing by Alexander Villegas. Editing by Adam Jourdan, Mark Potter, Franklin Paul and Rod Nickel)
