In the first quarter, the difference compared to the previous year was -9.6%, while in September it decreased to -5%. Production in the quarter increased by 2% compared to the same period last year, and August and September exceeded the same months of the previous year in this indicator.
“This quarter we broke the trend and began to recover production. We will maintain all efforts to ensure that the indicators continue to improve towards the end of the year,” said Rubén Alvarado, CEO of Codelco, in the Chilean state mining company’s quarterly results statement.
Despite this, the executive of the world's largest copper producer explained that the accumulated production of 918,000 tons does not reach the first nine months of 2023, but the gap is definitely narrowing: in the first quarter the difference over the previous year was -9.6%, while in September it decreased to -5%. Production for the quarter increased by 2% compared to the same period last year, and August together with September exceed the same months of 2023 in this indicator.
“This progress has been the result of various operational initiatives deployed to mitigate, on the one hand, the effects of the unfortunate fatal accident that occurred in March in the Radomiro Tomic Division, which halted that operation for more than a month, and on the other, the delay in the entry into production of Rajo Inca,” explained Alvarado.
Direct production costs remained in line with the previous period and stood at 205 c/lb. Meanwhile, net cathode costs rose 4.9% due to lower production in some operations, the development of mining plans that specifically seek the recovery of productive sectors, such as those implemented in the Ministro Hales Division, and finally, the closing of four collective bargaining agreements, among which stands out that of the El Teniente Division, which reached an agreement for the benefit of more than three thousand workers, within the framework of the continuity of the strategic plan agreed with unions and federations.
Likewise, economic indicators were favored by the price of copper and the exchange rate. Consolidated EBITDA (earnings before taxes, interest and depreciation) reached US$ 4,022 million, an increase of 24% compared to 2023, when it was US$ 3,237 million. Consolidated profit also increased substantially, going from US$ 19 million to US$ 227 million between both quarters of each year.
Contributions to the treasury up to September amounted to US$ 1,064 million, which, although it represents a very slight decrease of -3.4% compared to 2023, "allows us to maintain the goal of annual contributions committed to the Ministry of Finance, around US$ 1,500 million," said the CEO.
Investment Portfolio Progress
In the third quarter, the level of investment executed by the company reached US$ 3,531 million, which allows projecting a Capex of over US$ 4,500 million by the end of 2024.
At the end of the quarter, the budget execution of the project portfolio reached 116%, while the physical progress was 108%.
From the project portfolio, Teniente, Andesita -with an execution progress of 57.6%- started mineral extraction activities. It will begin its production during the next months. Andes Norte (new Mine Level), meanwhile, shows 75.7% progress with respect to the reformulated project program, a development that managed to overcome the effects of the rock bursts of the previous year and contemplates the beginning of mineral extraction during the first quarter of 2025.
At Rajo Inca, with 87.7% of total progress, the works at the mine are finished. Its prestripping was executed in an exceptional manner despite its complexity and the contingencies caused by the non-compliance of the previous contractor. There is already mineral in sight to begin treatment at the plant, which is in the process of operational testing to subsequently begin production during the last months of this year.
The first phase of the Chuquicamata Underground Level 1 infrastructure reached 67.2% progress. Meanwhile, Traspaso Andina continues the ramp up of the second crushing line that began in April 2024.
The desalination plant for Northern Operations, which is being built in Caleta Viuda, south of Tocopilla, has a physical progress of 52%, so its entry into operation is maintained for early 2026.
