Sunday , October 2 2022

Codelco executives are reviewing some projects to adjust AmericaEconomy's investment


Santiago.- Codelco, a state-owned landmark, is reviewing some of its projects to adjust its investments to the availability of tight cash, despite the favorable expectation of world copper demand -eang, the president of the company said in an interview with a local newspaper on Sunday. .

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

"We are conducting a fairly thorough review of all projects, to see which are less priority and deferred, so that the capital investment committed for each year can be reduced to less than US $ 4,000 million, "he said.

According to the executive, "it's practically" reduces capital investment to US $ 3,500 million a year, although it explains that there is no doubt about the company's structural projects.

The amount of annual investment does not match structural projects only, he says, but also for "other components such as mining, refurbishing equipment and machinery, sustainability issues".

Benavides also said that due to the lack of new minerals development, the expansion of electromobility and changes in the automotive industry, among other factors, "the world's supply would not grow by more than 1% per year and demand was 2%."

In October, in an interview with Reuters, Benavides said that Codelco intends to issue up to US $ 1 billion of debt next year to help fund a US $ 39 billion scheme to refurbish its existing excavations in the next decade.

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