Codelco reports an 8% decline in output during the first half of 2024
Chile's Codelco, the largest copper producer globally, announced on Friday a significant 8.4% decline in its copper output for the first half of 2024 compared to the corresponding period last year, totaling 579,785 metric tons. The reduction was attributed to operational challenges, including a prolonged truck strike following a fatal accident at the Radomiro Tomic mine, reduced contributions from El Teniente due to a rock burst last year, delays in ramping up production at Rajo Inca, and unfavorable weather conditions.
Despite these setbacks, the state-owned mining company reported a pre-tax profit of 653 million for the first six months of the year, marking a significant turn around from a loss of 316 million during the same period in 2023.
Codelco remains optimistic about its production prospects for the year, aiming to surpass last year's output of 1.325 million tons. The company has forecasted an output range of up to 1.390 million tons, anticipating a rebound in production during the second half of 2024.
However, analysts remain skeptical about Codelco's ability to meet its production targets in the coming months, citing ongoing operational challenges.
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"We are committed to regaining our ability to meet targets efficiently and timely, and these encouraging financial results motivate us to persist in our efforts," said Chief Executive Ruben Alvarado in a statement. "We are working diligently to ensure that, starting from the second half of this year, production will resume its long-term growth trajectory."
Codelco has set an ambitious target of progressively increasing its copper output to 1.7 million tons by 2030. Additionally, the company is leading the charge to increase state control over Chile's lithium industry. In May, it finalized a strategic partnership with SQM, the world's second-largest lithium producer, granting SQM access to extract lithium from the valuable Atacama salt flat until 2060.