Chile to reinvest 30% of Codelco's profits in company projects

The Chilean government will reinvest 30% of profits remitted by state-owned copper miner Codelco between 2021 and 2024 into the company, Xinhua News reported June 22.

The move will allow Codelco to control its debt and reduce financing costs while developing new projects, which are expected to account for 75% of its production by 2030. Codelco has sent all of its profits to government coffers for decades.

The company aims to build new projects that will ensure copper production of about 1.7 million tons per year for the next 50 years, the report said.

In 2017, Codelco launched a $40 billion program to upgrade its aging mines and smelters through 2026.

Copper prices dropped in late June after a price rally in May amid demand concerns linked to new COVID-19 outbreaks in Beijing and Shanghai as well as inflationary pressures.

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