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Codelco employees fear copper production push hard to preserve

Codelco pushed difficult to lift its copper production from a 25yearlow at the end of 2024, however union workers and analysts question whether its tactics are sustainable as it targets annual output of 1.7 million metric lots by the end of the years.

Codelco's production reached 1.328 million loads in 2024, at the low end of its target range and just about 3,500 tons greater than the quarter-century low in 2023, an internal document seen revealed.

Four employees spoken with said the world's largest copper producer had shortened downtime, altered shift schedules and heightened production targets while postponing some required maintenance until 2025, in its second-half push.

Analysts, meanwhile, questioned how deeply Codelco tapped its reserves to make its numbers, and stated new mines or sources of copper are required to make up for destruction of minerals at aging facilities.

An equipment operator at one of Codelco's largest mines, Chuquicamata, stated there was more pressure in the 2nd half of 2024 to lower routine blockages and avoid events that could trigger an interruption.

The worker, who asked not to be recognized since they were not licensed to speak about internal operations, stated Codelco has yet to fix traffic jams in carrying minerals in the mine.

Codelco said in February 2024 that it required to stop ore transportation at Chuquicamata to replace conveyor belts. That upkeep was expected this year.

Workers said upkeep was postponed at smelters in Chuquicamata and El Teniente, another crucial mine.

Codelco said in a declaration that it had performed arranged maintenance on the Chuquicamata smelter in December, while upkeep at the Caletones smelter at El Teniente began last month and would continue up until February.

This does not indicate an interruption for the entire duration, because among its 2 lines remains operational most of the time, Codelco stated.

It included maintenance at the huge Chuquicamata underground mine was prepared for the 2nd quarter, which would involve around 1,000 people working for about a month due to the tough and special nature of the mine.

The very first stage of the process has actually currently been completed, so the brand-new belt has actually currently reached the site. Safety measures are being considered the treatment of minerals from other divisions to satisfy the production goals for 2025, it stated.

Chairman Maximo Pacheco stated Codelco produced 160,000 heaps of copper in December, its biggest month because 2019. Miners generally dip into reserves to increase December production, yet experts stated Codelco might have tapped them more than typical.

Although it is typical for production to increase in December, our company believe this huge dive can be attributed to an extremely aggressive decrease in inventories, stated Juan Carlos Guajardo, head of the consultancy firm Plusmining.

Codelco will need to renew these inventories at some point.

LONG-TERM PROBLEMS

The genuine fight will continue to be the development of the bigger tasks like Chuquicamata Underground or El Teniente, due to the fact that these are the projects that will get the business to the level of 1.7 million heaps per year, Guajardo said.

These large mine overhaul projects have actually been plagued by delays, mishaps and building errors.

In its latest outcomes, Codelco said two brand-new stages of El Teniente will start later than expected. Andesita, which had been set up to start extraction in October, will now start in the coming months. It stated Andes Norte, originally slated for December, will begin extracting in the first quarter.

Cristian Cifuentes, an expert at the Center for Copper Research Studies (CESCO), said that the Ministro Hales mine is still at lowered capacity and the increase of Chuquicamata Underground has been slower than all of us believed.

You can see the problems when you add all these things together, Cifuentes stated, including he thinks production will boost, however not at the levels Codelco desires.

Company information showed that much of Codelco's 2024 win might be credited to its small Salvador mine coming online, which added 2,800 lots in October and November.

One analyst, who asked not to be called, said Codelco will show more output coming from its purchase of 10% of Teck's. Quebrada Blanca mine.

I don't see how they will resolve

(source: Reuters)