Codelco Copper Output Recovers in Q3 2024 After Setbacks

Codelco

Chilean state-owned copper producer Codelco has experienced a mixed performance in 2024, with a decline in copper output for the first nine months of the year, but a recovery in the third quarter. The company’s production challenges stemmed from operational setbacks, including a fatal accident and delayed start-ups at key units. Despite these obstacles, Codelco has seen positive financial results, with adjusted earnings showing a significant increase thanks to higher copper prices.

Decline in Year-to-Date Production, but Q3 Shows Growth

For the January-September period, Codelco’s copper production fell by 5% year-on-year, reaching 918,000 tonnes. The company’s CEO, Ruben Alvarado, cited two main factors behind this decline: a fatal accident at the Radomiro Tomic unit in March, which halted operations for more than a month, and a delayed start-up at the Rajo Inca unit.

However, there was a recovery in copper output during the third quarter. Production increased by 1.5% compared to the same period last year, reaching 338,000 tonnes. Despite facing declining ore grades at some of its key deposits, Codelco has managed to stabilize output in the short term.

Strong Earnings Boosted by Higher Copper Prices

On the financial front, Codelco reported a 21% increase in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for the first nine months of 2024, totaling $4 billion. This growth was largely driven by higher copper prices, which have provided a much-needed boost amid production challenges.

Looking Ahead: New Projects Set to Boost Output

Looking ahead, Codelco expects its production to increase with the upcoming expansions at its various units. The Andes Norte expansion at the El Teniente unit is slated to begin production in the first quarter of 2025, while the Andesita project is expected to come online in the coming months. The Rajo Inca unit, which has faced delays, is also expected to begin production by the end of 2024.