(Kitco News) - Codelco, the Chilean state-owned copper mining company, is actively pursuing international partnerships and making significant investments in its copper and lithium operations, according to Chairman Maximo Pacheco.
In an interview at the Future Minerals Forum in Riyadh, Pacheco emphasized the company's commitment to growth and its role in the global energy transition.
"We are building more partnerships because we strongly believe that we can have parties involved in collaboration that bring different contributions to the business," Pacheco told Kitco Mining.
Codelco has a history of working with international partners such as China Minmetals, and currently has joint ventures with Anglo American, Rio Tinto, and Teck. The company is open to opportunities with the Saudi government, as well.
Pacheco noted the scale of the Future Minerals Forum, noting the importance of cooperation and dialogue between governments and the mining industry, given the long-term nature of the business.
Codelco is currently undertaking a substantial investment program focused on structural projects. "The execution of a capital expenditure in 2024 was $5.5 billion dollars," Pacheco stated. "I don't think there is any other company in the world that invests this amount in copper." This investment is primarily directed towards extending the life of its existing mines.
The company is also expanding into lithium through joint ventures. Codelco is starting a joint venture with SQM in the salt flat of Atacama and will select a partner for the salt flat of Maricunga in the first quarter of this year.
While Codelco has a significant debt of over $20 billion, the markets are responding positively to the company's financial position. "We just issued $1.5 billion dollars in bonds, and we got five and a half times more than what we were requesting, in terms of volume," Pacheco said, underscoring the market's appetite for Codelco.
Pacheco said that the company's valuable portfolio of projects, supported by its ownership of 5% of the world's copper reserves, positions it well for future growth.
Pacheco also expressed optimism about the future of copper, noting its critical role in the global energy transition. "If you believe that the world of the future will be more electrical, the best conductor of electricity is copper," he stated.
The increasing demand for copper will drive prices higher, he added. ”The world needs more copper and it's obvious to me that if there is a strong demand of copper, that means that the world will pay for it.”
Special thanks to our sponsor, the Future Minerals Forum (FMF), for making this coverage possible. Visit https://www.futuremineralsforum.com/ to learn more.
Subscribe on Apple Podcasts, Amazon Music and Spotify. You can also add the RSS link to your favorite podcast player: LINK