Chile’s total copper production, including private companies, was only 1.7% higher than 20 years ago.
By María José Giménez
Máximo Pacheco, Chairman of Codelco, has passed the test. In 2024, according to data released last Friday by Cochilco and an analysis by consultancy firm Plusmining, the state- owned company produced 1.329 million metric tons of copper, surpassing 2023’s output by 4,000 metric tons.
According to information available on Codelco’s website, the company’s production expectations for 2024 (announced in March of the same year) ranged between 1.320 million and 1.390 million metric tons. However, by October, these expectations were adjusted to between 1.325 million and 1.352 million metric tons.
This growth remains modest considering that 2023 represented the lowest production figure in 20 years for the state owned mining company. At that time, Codelco’s Chairman, Máximo Pacheco, stated: “The 2023 figures do not satisfy us, they concern us, and they drive us to action, because we understand the expectations of Chileans who anticipate a greater contribution from Codelco.”
When considering Codelco’s own production—which comes from its Chuquicamata, Radomiro Tomic, Ministro Hales, Salvador, Andina, El Teniente, and Minera Gaby operations—the 2024 output exceeded 2023’s by approximately 4,000 metric tons, thanks to a historic production level achieved in the last quarter of the previous year.
According to Juan Carlos Guajardo, Executive Director of Plusmining, this increase was due to “intensive processing of inventories, as evidenced, for example, by the Salvador division reporting production between October and December 2024, despite the fact that no mining operations were ongoing during that period.”
On the other hand, if Codelco’s total production (including its stakes in Anglo Sur and El Abra) is considered, 2024’s output was lower than 2023’s. Total production was 1,423,800 metric tons in 2023 and 1,422,100 metric tons in 2024, according to Cochilco. Experts attribute this decline to what happened at Anglo Sur. Andrés González, Head of Mining Industry Analysis at Plusmining, noted that “the figures were affected by Los Bronces, which has been facing a period of declining ore grades and the temporary closure of one of its plants, all within the context of water scarcity in the region.”
“The increase is due to intensive inventory processing”— Juan Carlos Guajardo, Plusmining.
Private Mining Growth
Meanwhile, in 2024, private mining production increased by 257,000 metric tons. Experts explain this growth as the result of contributions from major mining projects such as Quebrada Blanca, Escondida, and Mantos Copper.
According to Cristian Cifuentes, Senior Analyst at the Center for Copper and Mining Studies (CESCO), these three companies “drove private sector production, which goes hand in hand with the investments mining companies have made in their projects.”
However, both state-owned and private mining face common challenges. Water scarcity is one of the main concerns, according to Cifuentes. “There are critical issues related to water supply, particularly the desalination plant in the Northern District. The district’s water needs are significant, so any delays in that project could clearly impact production.”
Long-Term Perspective
Experts emphasize that a long-term perspective is crucial when analyzing the mining industry, beyond year-to-year fluctuations.
Juan Carlos Guajardo argues that “the key issue is understanding the actual progress of major ‘structural projects’ that will determine Codelco’s production—not just for one year, but for decades to come.”
Similarly, Gustavo Lagos, Professor of Engineering at Pontificia Universidad Católica de Chile (PUC), believes that the modest increase in copper production in 2024 is a matter for analysis rather than celebration. “Production was only 1.7% higher than 20 years ago. Chile has failed to significantly increase its copper output despite the mining sector investing $200 billion (2023 dollars) between 2004 and 2023,” he stated.
Total mining production in Chile reached 5.5 million metric tons in 2024, compared to 5.3 million metric tons in 2023, representing a 3.7% increase.
Despite this, Cristian Cifuentes remains optimistic about Codelco’s operations, stating: “I believe that the most challenging period for Codelco’s production is now behind us. We should expect sustained increases in the coming years.”
“Chile has failed to significantly increase production despite a $200 billion
investment between 2004 and 2023.”— Gustavo Lagos, PUC.
More Than Just Mining
The significance of analyzing the mining industry’s 2024 results goes beyond being Chile’s primary productive sector—it lies in its ability to drive growth in other industries.
According to Gustavo Lagos, Chile’s economic model needs rethinking: “Copper should serve as a platform for wealth creation in other sectors of the Chilean economy. In the future, we may see a smaller direct contribution of copper mining production to GDP growth, but the wealth it generates will be crucial for the development of other industries.”
Source: La Segunda