Codelco cuts investment for the year, long term ambitions undiminished

Chile’s State-owned Codelco – by far the largest copper producer in the world – it is cutting its $5 billion investment for 2013, but said the measure won’t affect its planned expansions of key operations or the replacement of its depleting mines, which has seen its overall output fall by more than 5% last year.

In an interview with local newspaper La Tercera (in Spanish), CEO Thomas Keller said the new figure is close to $4 billion and that the company continues to move forward with it short and long term plans, which include the expansion of the Andina mine and the construction of a new underground levels at the El Teniente and Chuquicamata mines.

Earlier this month, the copper began seeking outside financing for its projects, placing a $750 million bond. That money will be used in the implementation of the company’s $27 billion investment plan for 2012-2016.

Copper accounts for 60% of the country's exports and 15% of its gross domestic product (GDP).

Image: Thomas Keller via Flickr Commons