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SANTIAGO – Chilean state mining company Codelco, the largest copper producer in the world, yesterday announced pre-tax profits of US$3.7 billion (RM15.6 billion) for the first half of the year.
The figure is almost 10 times higher than that recorded in the same period in 2020, and is due to increases in copper prices and production.
Last year, Codelco’s pre-tax profits amounted to US$380 million.
The company produced 796,000 tonnes of copper in the January-June 2021 period, a 7% increase from a year ago.
Copper ore reached record prices of more than US$10,700 per tonne in May, although it has since dropped back below US$10,000.
Chile produces 28% of global copper, much of which is sold to China, the world’s largest consumer of the red metal.
Even when the economy went into lockdown during the Covid-19 pandemic, Chile kept its copper mines operating.
Codelco executive president Octavio Araneda said “the price of copper was undoubtedly a positive factor in the results, but so was the increase in production, and lower costs than those in the budget”.
The company in 2020 recorded pre-tax profits that were 55% higher on-year, providing more than US$2 billion to the South American nation’s economy – a welcome boost during the pandemic. – AFP, July 31, 2021