Saturday , June 12 2021

Codelco executives review some projects to adjust investment American economy

Santiago.- Chilean state coal miner Codelco is reviewing some of his projects to adjust his investments to close cash availability despite maintaining a favorable expectation for global copper demand, the company's chairman said in an interview with a local newspaper on Sunday. .

Codelco, the largest copper producer in the world, expects the deficit to be between $ 500 million and $ 1,000 million a year by 2028, Juan Benavides told the El Mercurio newspaper.

"We are doing a fairly detailed review of all the projects in order to see which less priority and postponement so that the capital investments that are bound for each year can be reduced to less than US $ 4,000 million," he said.

According to the executive, "it is feasible" to reduce the capital investment to US $ 3,500 million a year, although it clarified that the company's structural projects are not being questioned.

The amount of the annual investment does not only correspond to structural projects, he said, but also to "other elements such as the development of mines, the renewal of equipment and machinery, issues related to sustainability".

Mr. Benavides also said that due to the lack of new mines, the expansion of electromobility and changes in the automotive industry, "global supply would not increase more than 1% per year and demand for 2%. "

Earlier in October, in an interview with Reuters, Benavides said Codelco plans to issue a $ 1 billion debt next year to fund a US $ 39 billion project to rebuild existing mines over the next decade.

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