Monday , September 26 2022

Codelco directors review some projects to adjust investment | AméricaEconomía


Santiago.- China's mineralization agent, Codelco, is reviewing some of its projects to adjust its investments in high cash availability, despite maintaining a favorable expectation of global copper demand, the company's president said in an interview Sunday with a local newspaper. .

Codelco, the largest copper producer in the world, expects a cash flow range of between $ 500 million and $ 1,000 million a year by 2028, Juan Benavides told the newspaper El Mercurio.

"We are doing a fairly thorough review of all the projects to see which are less priority and possible, so that the capital investments employed for each year can be reduced to less than $ 4,000 million," he said.

According to the executive, "it is possible" to reduce capital investment to 3,500 million USD a year, although he said the company's structural projects are not questionable.

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

Benavides also said that due to the lack of new mines, the expansion of electromobility and changes in the automotive industry, among other factors, "global supply will not grow by more than 1% per year and demand for 2%."

Earlier in October, Benavides said in an interview with Reuters that Codelco plans to issue a debt of up to $ 1 billion next year to fund a $ 39 billion dollar bill to mine mines in the next decade.

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