Codelco Banks on Expansion

BY GIDEON LONG

SANTIAGO  —  Chile’s state-owned mining giant Codelco has enjoyed around three years of sky-high prices for its main commodity, copper, but it faces formidable challenges in the years ahead.

Firstly, the global financial crisis has sent the price of copper tumbling by around 40 percent since it hit a historic high in July. The correction was always likely to happen and, indeed, Codelco has been warning of an end to the so-called commodities super-cycle for some time – but, nevertheless, it is sure to take the shine off the company’s 2008 results. 

QUALITY DECLINE, LABOR UNREST 

Secondly, Codelco is suffering from a fall in ore quality. Its mines, located in northern and central Chile, are...

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Keywords:  Andina, Chuquicamata, Expansion, Gaby, Labor, Production