Codelco's direct production costs rose nearly 34% to about $204 per pound, from $153 the year before, due to higher operating costs as well as higher input prices.
The company said lower production at its Ministro Hales, Andina and Chuquicamata mines was caused by various operational problems, including a mill motor failure and concentrator feed contingencies, according to the quarterly filing. Last week, Codelco said it saw
greater synergies with its Andina mine and Anglo American's neighboring Los Bronces mine after an environmental permit was approved, paving the way for a $3.3 billion project extension.
In March, Codelco forecast copper prices between $3.5 and
$4.4 per pound in 2023. The company also said it expects capital
expenditures between $3.5 billion and $4.125 billion for the
year.
Chief Executive Andre Sougarret said in a statement that
he expects gradual progress from 2024 through the end of the
decade, as production gains are achieved.
"It's a complex transition time, between deposits that are running out and projects that are coming online," he said.
Prices for copper, often seen as a bellwether for the global economy, have been helped by optimism over recovering Chinese demand, though worries about economic recession have curbed gains. (Reporting by Carolina Pulice and Marion Giraldo; Writing by Sarah Morland; Editing by David Alire Garcia and Leslie Adler)
