Codelco has released its 2024 results in which it reports a significant turnaround from its production headaches of previous years – it closed the year with EBITDA of US$5.439 billion and a contribution to the Treasury of US$1.534 billion – up 30% and 8% respectively.
Codelco CEO Rubén Alvarado stated: “After a decline in production between 2022 and 2023, we focused on overcoming old operational events, as well as delays in structural projects that were still negatively impacting our production targets, to begin a gradual exit from the production valley we were in.”
He adds: “Specifically, during 2024 we resolved some long-standing problems, which allowed us to add 1,328,425 t of our own copper, 3,871 t more than the previous year. This improvement was concentrated in the second half of 2024. What is significant is that production began to rise in August and consolidated over the months until the end of the year.”
Among other operational events that the company has begun to overcome is the pit wall slide that occurred in late 2021 at the Ministro Hales Division. After two and a half years, the company was able to increase production with the parallel development of three additional phases – phases 7b, 7c, and 8 – which now allow for greater flexibility in mine development. As a result, mine throughput increased by an average of 18%.
At the El Teniente Division, meanwhile, the 2023 rock explosion resulted in a drop in processing at the concentrator from an average of 140,000 t per day to 123,000 t. “After intensive work to repair the galleries and affected infrastructure, starting in July 2024, one year after the event, we exceeded an average of 138,000 t per day, thus recovering the production capacity of that area and increasing divisional production since September,” explained Alvarado.
In Chuquicamata, processing at the concentrator plant increased to over 169,000 t per day, an improvement associated with operational continuity and the stability of the material handling system, despite other challenges, including the repair of the conveyor belt in April and major maintenance of the concentrator in October.
“Furthermore, the standards recovery plan that began three years ago at Andina allowed us to achieve a positive trend in the concentrator’s operational continuity in 2024. Thus, while in 2023 the average processing rate was 70,000 t per day, this year it added 11,000 t more, a historic figure for this division,” the executive explained.
However, at the Radomiro Tomic Division, following the tragic fatal accident in March, mine operations were completely halted, returning to normal operations only in June. This, coupled with a depletion of oxide ore, resulted in a 14% drop in production compared to 2023.
Meanwhile, at the Salvador Division, the delay in the Inca Pit project prevented compliance with the plan, resulting in 54% lower production than in 2023.
Total copper production, which includes the state-owned company’s own production plus its 49% stake in El Abra, 20% in Anglo American Sur, and 10% in Quebrada Blanca, totalled 1,441,886 t
Direct costs (C1) reached 199.1 cents per pound (c/lb), a 2% decrease compared to the previous year, primarily due to a favourable exchange rate and lower input costs. Net cathode cost (C3) also decreased 2%, reaching 328.4 c/lb, for the same reasons mentioned above, despite higher non-operating expenses.
As of December 2024, consolidated EBITDA (earnings before interest, taxes, depreciation, and amortisation, and before the Reserved Copper Law) amounted to US$5.439 billion, 30% higher than in 2023, when it reached US$4.184 billion. The variation is mainly due to a higher copper sales price, lower costs, and improved non-operating results. The margin, meanwhile, was 32%. As a result, consolidated contributions to the Treasury increased by 8%, reaching US$1.534 billion, compared to US$1.426 billion in 2023.
Structural projects
In 2024, the first phase of the continuity infrastructure for Level 1 of the Chuquicamata underground mine (which began operations in 2019) reached 73% completion, and the prefeasibility study for Level 2 is expected to be completed in 2025.
During 2024, the reformulation of the Rajo Inca project was authorised, which will extend the operation of the Salvador Division for approximately 40 years. Prestripping was completed, and commissioning of the concentrator began, reaching a total of 90% completion. The ramp-up of the plant and complementary works is expected to be completed in 2025.
The Andina Transfer project, whose primary purpose was to relocate the existing primary crushing plant to allow continued open-pit mining operations, began operations in April 2024.
Meanwhile, the consolidated effects of the geotechnical challenges, manifested through rock bursts and various market situations, impacted the short- and medium-term projections of the three projects associated with El Teniente. In any case, the reformulation process for Andes Norte was completed in 2024, with a progress of 63% (77%, considering the initial investment in the New Mine Level) and Diamante (40% completion); while Andesita reached 64% completion. Production at Andes Norte and Andesita is scheduled to begin in 2025.
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