Codelco warns more restrictions on copper mines would be 'catastrophic'
2020-07-03 10:50:02 [Print]
Chile's State-run Codelco, the world's top copper producer, warned on Thursday any move to ramp up restrictions on its mines amid the COVID-19 outbreak would be "catastrophic" for the country, the company's chief executive said.
CEO Octavio Araneda said the miner, which turns over all its profits to government coffers, had acted quickly and proactively to contain the COVID-19, despite increasing criticism from unions and politicians in recent weeks.
The mining giant said in April and May it had held output and shipments of copper steady despite the growing crisis. But the exploding pandemic in the South American nation has boosted the company's infection tally and led to calls for further restrictions.
Union groups say at least 2 300 of Codelco's workers have been infected. Araneda downplayed the figures, saying they were on par with the rest of the industry.
Araneda touted safety measures the company has taken, including longer shift rotations at its flagship El Teniente mine and temporarily shutting down its Chuquicamata smelter and refinery. He said the company was working with as much as a 50% reduction in staff.
The move to shut down the Chuquicamata smelter would cost the miner $7-million a month, Araneda said, and force it to ship copper concentrate instead of cathode. That would boost total costs in the division by about 5%, he said.
CEO Octavio Araneda said the miner, which turns over all its profits to government coffers, had acted quickly and proactively to contain the COVID-19, despite increasing criticism from unions and politicians in recent weeks.
The mining giant said in April and May it had held output and shipments of copper steady despite the growing crisis. But the exploding pandemic in the South American nation has boosted the company's infection tally and led to calls for further restrictions.
Union groups say at least 2 300 of Codelco's workers have been infected. Araneda downplayed the figures, saying they were on par with the rest of the industry.
Araneda touted safety measures the company has taken, including longer shift rotations at its flagship El Teniente mine and temporarily shutting down its Chuquicamata smelter and refinery. He said the company was working with as much as a 50% reduction in staff.
The move to shut down the Chuquicamata smelter would cost the miner $7-million a month, Araneda said, and force it to ship copper concentrate instead of cathode. That would boost total costs in the division by about 5%, he said.
Copper Cathode 99.99%min Delivered China
Unit:RMB/mt
China refined copper producers' sales to production ratio statistics by province by month
Unit: %
