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Chile's Codelco needs private partners to halt output fall, board chairman says

By Reuters News

SANTIAGO, Nov 9 (Reuters) - Chilean state-owned miner Codelco's copper production will continue falling unless the company partners with private firms to develop new projects, board chairman Bernardo Fontaine told a local radio station on Monday.

The miner has been struggling to recover its output following record lows between 2022 and 2023, as delays in key projects, accidents, low ore grades, and a recent scandal involving inflated production figures have thwarted its efforts.

  • "The company holds a million hectares of mining concessions that remain unexploited, and it lacks both the management capacity and the capital to develop them," Fontaine said in an interview with local station Radio Duna

  • "That is the only way it can grow, or even maintain, its production levels in the future," he added

  • Codelco has faced obstacles in fostering these partnerships due to legislation that imposes specific limits on state-owned companies, while the lengthy and complex process "scares off" most potential partners, according to Fontaine

  • Nevertheless, Codelco has already partnered with global mining giants Rio Tinto RIO.L and BHP BHP.AX

  • Fontaine said Codelco's new management team has eliminated the "excessive optimism" that led to the previously reported inflated production figures

  • "We will make every effort to achieve average annual production of around 1.3 million tonnes," Fontaine added

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