World No 1 copper miner Codelco will slash costs by $1-billion in 2015 and cut direct cash costs by $0.193/lb of copper at its operations, CEO Nelson Pizarro said Friday, as the price of the base metal slumped to multi-year lows.
Still, none of the Chilean state-run copper miner's large investment projects will be at risk and no personnel will be laid off, Pizarro said.
Instead, the company would look to implement efficiencies by such measures as the renegotiation of energy contracts, he said.
Copper prices reached 5-1/2 year lows on Friday, continuing a recent slide that has been driven by concerns about global economic growth and demand from China, which accounts for 40% of global refined copper demand.
Codelco, battling falling ore grades at its decades-old flagship mines, is implementing an ambitious multi-billion investment plan over the next few years to open new projects and revamp older ones.
Source: Reuters |
