The Chilean state-owned company is struggling to revive its performance from a 25-year low and aims to close the year at around 1.331 billion tons.
Chile's state-run Codelco is pushing to speed up copper output in a bid to meet its annual target, according to two sources and an internal document, putting a weak first half of the year behind it.
The world's largest producer of the metal is struggling to revive its performance from a 25-year low and aims to end the year at about 1.331 million tonnes, according to senior company sources, which would be 0.5% from last year and at the lower end of its forecast range.
In an internal document seen by Reuters , the firm said its October output, already flagged by the company as its best performance of 2024, was 2.9% higher than estimated, the most concrete sign yet of its performance. Official data will be published in the coming days.
The annual figure and the percentage increase for October had not been previously reported.
The company's disclosed range is 1.325-1.352 million tonnes of copper, with the upper limit cut in July from an original 1.39 million tonnes. Its 2024 plan targeted 116,500 tonnes in October, an internal document seen earlier by Reuters showed. A 2.9% overshoot would suggest actual output closer to 120,000 tonnes.
Codelco declined to comment on its production figures.
Copper is key to electric vehicles and the global green energy revolution, with growing demand driving prices.
CONFIDENT LEADERSHIP
The miner, which is also leading a state-run lithium push, has been hit by operational problems at key mines, accidents and a drop in ore quality as global demand for the metal soars.
It also faced a challenging start to the year, including delays at the Rajo Inca project in the small Salvador division and a fatality at Radomiro Tomic, leading analysts to point out risks to its targets.
But the company has made an effort in recent months, and executives are more optimistic. Chairman Maximo Pacheco said earlier this month that October was the best month so far this year and that it was above target, without giving details.
One of the sources said the leadership was "confident" of meeting the annual target and detailed that the flagship El Teniente mine was above target, while Salvador was lagging. The giant Chuquicamata was on track.
A second source confirmed the figures and expectations, although the final number will depend on how quickly Codelco can ramp up production in the final stretch of the year. The source cautioned that the full-year figure could be lower.
Codelco would certainly have to maintain a breakneck pace to achieve its target. It would need more than 400,000 tonnes of copper in the fourth quarter, 20% more than in the third quarter.
And in the bigger picture, even if it does succeed, output is still a long way from its peak of a decade ago, analysts said.
"Regardless of whether or not it meets the target, we cannot lose sight of the fact that Codelco is going through a major crisis," said Juan Ignacio Guzmán, director of the Chilean mining consultancy GEM.
