Codelco is contemplating pulling back its investment plans because of the COVID-19 pandemic, according to local media reports that cited Octavio Araneda, the company’s president.
The Rajo Inca mining project is among the potentially deferred investments, he said.
Codelco, a prominent Chilean company, currently has about $3bn in available cash, which will help it meet its commitments this year despite the company forecasting lower copper prices, a company spokesperson told Davis Index.
Chile has lowered its price guidance for copper by 45¢/lb to $2.40/lb, due to the COVID-19 pandemic’s impact on the national copper industry.
At the end of March, Codelco temporarily suspended construction on three mining projects, including Rajo Inca, to protect its employees from the spreading virus.
Rajo Inca, which is part of the Salvador mine, has $1.2bn earmarked for investment and will help to raise Codelco’s copper production by 30pc to 90,000mt per annum from 60,000mt, according to figures from the company.