Thursday , July 29 2021

The executives of Codelco review some projects to adjust the investment | América Economía

Santiago.- The Chilean state minority, Codelco, is reviewing some of its projects to adjust its investments to a strong cash availability, despite maintaining a favorable expectation for copper global demand, the company's president said in an interview with a local newspaper or sunday .

Codelco, the world's largest copper producer, expects a cash deficit range of between $ 500 million and $ 1 billion a year until 2028, Juan Benavides told El Mercurio newspaper.

"We are going to do a thorough examination of all the projects, in order to see which are less priority and later, so committed capital investment for each year can be reduced to less than $ 4,000 million," he said.

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

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

Benavides also said that due to lack of development of the new mines, the expansion of electromobility and changes in the automobile industry, among other factors, "world supplies would not grow more than 1% per year and 2% demand."

Earlier in October, in an interview with Reuters, Benavides said Codelco plans to issue up to $ 1 billion in debt next year to help finance a $ 39 million plan to renew its existing mines in the next decade.

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