SANTIAGO, July 11 World No. 1 copper producer
Codelco is mulling selling some nonessential assets
to finance its investment plan after the Chilean government
allocated the state-owned miner less money than it wanted, a
local newspaper reported on Thursday.
Codelco is in the midst of a long-term plan to boost output
from its massive but aging mines. It intends to spend about $27
billion to boost annual output from roughly 1.7 million tonnes
to more than 2 million tonnes in coming years.
The miner was disappointed with the $1 billion Chile's
government said last week it would return to Codelco, which
produces roughly 11 percent of the world's red metal.
"We've looked around Codelco to see what assets we can do
without, (assets) that we could make liquid," Chairman Gerardo
Jofre was quoted as saying by the newspaper Pulso.
Additionally, the company has said it is reassessing some
investments in the wake of the disappointing capitalization
levels to ensure financial responsibility. It could also seek to
issue more debt to fund spending.
Codelco hands over all its profits to the government. The
battle for capital comes as Codelco is struggling to rein in
soaring costs as global copper prices tumble.