World's largest copper producer sees 5% decline in Sep '14 output

SANTIAGO (Scrap Monster): According to data published by the National Statistics Institute of Chile (INE), the country’s copper output has dropped by 5% during the month of September this year.

Chile produced 464,572 mt of copper during the month when compared with the output of 489,170 mt during the same month a year ago. The output by the world’s largest copper producer dropped on account of temporary shutdowns at major mines due to maintenance. Lower ore grades also contributed to the drop.

The cumulative copper output by Chile during the period from January to September this year totaled 4.281 million mt. This is slightly higher by 1% when compared with the output of 4.239 million mt during the corresponding nine-month period in 2013.

Meanwhile, in an attempt to boost copper production, the government has approved special contribution package of $4 billion to state-owned Codelco. The amount will be paid over the five-year period from 2014 to 2018. The new investment is aimed to boost Codelco’s productivity to over 2 million metric tons per annum.

As part of its expansion programs, Codelco plans to upgrade its aging mines and to convert the El Teniente underground copper mine into an open pit operation.