Codelco to Discuss Project Funding as Copper Rout Erodes ProfitJames Attwood
Codelco, the biggest copper-producing company, will discuss funding arrangements for its 2014-2018 business plan at a shareholders meeting this month as falling prices and profit increase the need to tap debt markets.
The extraordinary meeting was called for Sept. 29 at the state-owned company’s Santiago headquarters, it said in a statement posted by Chile’s securities regulator on Tuesday.
The announcement comes as Codelco joins the wave of cutbacks at mining companies globally as the industry responds to slumping prices amid a slowdown in Chinese demand.
The state producer is redesigning its proposed Andina expansion in an effort to lower investments and the impact on the environment, Chief Executive Officer Nelson Pizarro told reporters on Aug.28.
Other Codelco projects -- such as converting the Chuquicamata open pit into an underground mine, an expansion at Radomiro Tomic and a smaller project at Andina -- are on schedule, Pizarro said at the time. A project at its biggest mine, El Teniente, “will advance if there is a technically and economically viable solution,” he said.
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