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Chile's Codelco increases copper production, Chairman bullish despite trade conflict

Codelco, Chile’s state-owned copper manufacturer, increased production in the first quarter of 2025.

Trade war escalates

Maximo Pacheco, chairman of the board, said that there is a growing relationship between China and the U.S.

The world's largest copper producer recorded slightly higher production in the first quarter than the same period of 2024. It is also maintaining its production guidance, even after a nationwide power outage in Februrary crimped the output.

In an interview given ahead of the CESCO/CRU conferences on the copper industry in Santiago, Pacheco stated that "we will have a quarter which will be slightly better than the first of last year."

Codelco aims to produce between 1.37 and 1.4 millions tons of copper in this year. This will be the second year that production has increased after a 25-year low was reached in 2023.

Pacheco said that he was confident in the long-term demand for copper due to the need of global energy transformation, despite the short-term volatility on commodities markets after the sweeping tariffs implemented by U.S. president Donald Trump.

Pacheco stated, "I'm convinced that long-term fundamentals remain very strong and difficult to change." "I understand the nervousness of the markets and people who are experiencing this turbulence. But we operate on a different circuit," Pacheco said.

Codelco is trying to remain flexible as global demands fluctuate, he said. Last week, the company said that it was sending more spot sales into the U.S. as buyers were stockpiling copper in anticipation of possible tariffs.

He said, "We must have a flexible and diversified vision with a good service for our clients."

Codelco also wants to strengthen its ties with India following a recent visit by President Gabriel Boric and an agreement with Adani Group.

Pacheco stated that "we will continue to grow our business in India".

Pacheco said that the company has also been in contact with Saudi Arabia. The country is very interested in lithium and copper, which are both essential for electric vehicle manufacturing.

They have a great deal of interest within Chile and in Codelco.

Codelco lost 5,000-7,000 tons of production due to the blackout that lasted several hours in Chile during February. However, the miner recovered the loss, according to the official.

He said: "It does not mean the production will be lower than last year." (Reporting and editing by David Gregorio, Fabian Cambero, Daina Beth Solon)

(source: Reuters)