Codelco, Chile’s state copper mining company, participated in a meeting in the Senate’s Mining Commission to report on the company’s financial results. The president of the board of directors, Máximo Pacheco, and the executive president, Rubén Alvarado, attended to present the main results of the company at the end of 2023 and the first quarter of 2024, as well as other topics related to production, structural projects and business advances. related to lithium in the Maricunga and Atacama salt flats.
Financial Results and Production
In the meeting with the senators, Rubén Alvarado highlighted the company’s management by closing the first quarter of 2024 with a production of 295 thousand tons, in line with what was planned in the budget. In addition, an Ebitda of US$ 1,529 million was reported, with an increase of 33.7% compared to the same period last year.
“Despite the disruptions we have faced in our continuity of operation, our aspiration and commitment is to achieve the budgeted contribution for this year,” said Alvarado. Production is expected to gradually recover in the coming years, reaching 1.7 million tonnes by 2030.
Contribution to the Treasury
Máximo Pacheco highlighted the relevant contribution of Codelco to the Chilean Treasury, comparing it with that of other private mining companies. According to Pacheco, Codelco contributed half of everything contributed by the country’s ten main large copper mining companies during 2023, which represents US$ 1.4 billion, half of the total US$ 2.8 billion delivered by these companies. . This participation demonstrates the commitment and importance of Codelco in the economic development of Chile.
Lithium Projects
At the meeting, advances in lithium were discussed. The purchase of Lithium Power International (LPI) by Codelco was highlighted, which will accelerate the development of a lithium project in the Salar de Maricunga. In addition, preliminary agreements with SQM for electricity supply and other aspects were mentioned. These projects reflect Codelco’s interest in taking advantage of the opportunities offered by the lithium market.
Association with SQM
Máximo Pacheco spoke about the Memorandum of Understanding with SQM for the Salar de Atacama and explained the reasons behind the partnership. Pacheco assured that this association will allow the State of Chile to receive approximately 70% of the profits generated by new lithium production between 2025 and 2030, and 85% as of January 1, 2031. This association seeks to benefit the State and to the communities involved, promoting sustainability and dialogue.
