Chile's Codelco copper output drops 5.3pc in 2019, profits plunge

• The weak results put Codelco in a tight spot as the impact of the coronavirus outbreak take hold in Chile.
•  Codelco is pushing a 10-year, $40 billion plan to boost output from its aging mines

SANTIAGO: Chile's Codelco said on Friday output had dropped 5.3% in 2019, driving profits down sharply, as the state-run miner and world's top copper producer continues to battle with rising costs and falling ore grades at its aging deposits.

Codelco said in end-of-year results it produced 1.588 million tonnes from its wholly owned mines in 2019, and that profits had fallen 17% from the previous year to $1.340 billion. Direct cash costs rose 1.8%, the company said.

The weak results put Codelco in a tight spot as the impact of the coronavirus outbreak take hold in Chile.

Codelco is pushing a 10-year, $40 billion plan to boost output from its aging mines. But the company was forced to temporarily suspend construction on some key projects in a bid to halt the spread of the virus.

The mining company's sprawling deposits, scattered across central and northern Chile, continue to operate albeit with reduced staff, though unions this week ratcheted up pressure to shut down to safeguard workers.