Codelco to invest US$2.8bn this year

Chilean state copper producer Codelco plans to invest approximately US$2.8bn across its different operations this year, company CEO Nelson Pizarro said at the company's 2016 results press conference.

The investments are some US$600mn higher than those made in 2016, which reached US$2.236bn, according to the results presentation.

The company will continue to focus its efforts on meeting the new emission standards for its smelters, as new rules are due to be enforced next year, as well as at the underground transformation of its Chuquicamata mine and the new mine level at El Teniente.

Environmental investments last year reached US$590mn, of which US$208mn went towards upgrading its different smelters. The company has said that it plans to invest US$1.8bn in order to meet the new environmental requirements.

Last year the company decided to realign its so-called structural projects – designed to increase production to 2Mt by 2025 – by shifting its strategy from simultaneous development to a sequential model, prioritizing those already under construction while pushing the rest back.

As such, the company's main focus for this year will continue at Chuquicamata underground, the connectivity between the open pit and underground facilities at Andina and the new mine level at El Teniente.

Pizarro said that in the case of Chuquicamata underground (pictured), the project is now 41% complete, which means roughly 60-70km of underground tunnels are already built. He said that the company expects to begin working at the underground level in early 2019.

In the case of the Andina transfer project, currently 33% complete, Pizarro said the company is on track to deliver its completion ahead of schedule, by 2020.

The new mine level at El Teniente is 42% complete, where the company continues to address the rock bursting that slowed down construction. Pizarro said that the company finally managed to come up with a solution to the problem and is back on track for its construction.

Two other projects, the future expansion at Andina and the Rajo Inca project at its Salvador mine, are still under evaluation in a phase of engineering studies. At Rajo Inca continued exploration has returned positive results, Pizarro said.

As regards construction of a desalination plant for its northern operations, for which the company recently issued an international call for construction and operation, Pizarro said Codelco received several expressions of interest and that it expects construction to begin in 2018, once the partner has been chosen.

As for the search for partners to develop its lithium assets, the chief executive said the firm also received several expressions of interest and that he expects that Codelco to be able to select one starting in the second quarter,.