Codelco, the Chilean state-controlled copper miner, increased copper output in 2009 by 16 per cent to 1.78 million tonnes compared to 1.46 million tonnes in 2008. This figure includes Codelco’s 49 per cent share of the El Abra mine controlled by Freeport McMoran, which equated to 80,000 tonnes.
Codelco also produced 22,000 tonnes of molybdenum during the year, against 21,000 tonnes in 2008.
However, profits before tax and extraordinary items fell by 18 per cent to $4 billion due to lower copper prices and the global financial crisis. Revenues rose to US$8.88bn from US$8.74bn the previous year, despite a steep fall at the company’s molybdenum division, registering a fall of $1 billion down to $500 million.
Output was higher for the first time in four years, largely due to investment in ageing plant, and helped by stimulus money from the Chilean government. The company invested $2.13 billion during the course of the year against $1.99 billion in 2008. Production was also helped by the fact that were no strikes at the company during the year.
CEO José Pablo Arellano told a press conference on Thursday that Codelco was the only Chilean miner to register growth during 2009. Figures for Chile’s copper production showed a fall on 5 per cent during 2009. Mr Arellano said that Codelco’s share of Chile’s copper production rose from 27 per cent in 2008 to 33 per cent last year.
Total costs fell to US$1.58/lb last year from US$1.78/lb in 2008. Cash costs following by-product credits and other deductions rose to US$0.93/lb in 2009 from US$0.70/lb in 2008.
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