Codelco posts higher output

Vancouver The world’s largest copper producer churned out 367,944 tonnes of the metal in the first quarter of 2003.

Chile’s state-owned Codelco posted a 4.6% jump in output in the three months ended March 31, but copper sales, including those from third parties, fell 8.6% to 423,000 tonnes due to the company’s decision to stockpile its own copper until world inventories fall.

Last Nov., the company agreed to set aside 200,000 tonnes of copper production from 2003 to establish a stabilizing stock. Codelco plans to plug its stockpiled copper back into markets when world inventories shrink to 800,000 tonnes.

Cash cost in the first quarter rose to US$0.42 per lb, from US$0.413 per lb in the corresponding period last year. Pre-tax profit rose 16.1% ringing in at US$108 million.

Codelco produced 1.52 million tonnes copper in 2002, down 4.5% from 2001 due to planned cutbacks to offset weak demand.

The major is also negotiating a syndicated loan of US$300 million with international banks to finance new projects.

Codelco expects to invest US$1 billion this year, mostly for expansions at its El Teniente and Chuquicamata mines.