SANTIAGO: World No. 1 copper producer Chile's Codelco said on Monday its 2010 output dipped and sees it steady this year, but sees consumption growing faster than historical averages on the global recovery, strong China demand and new uses.
Codelco said profits surged 47 percent to $5.8 billion in 2010, with a rise in copper prices to record highs more than compensating for a 0.8 percent fall in production from 2009 to 1.688 million tonnes.
CEO Diego Hernandez told a news conference he sees output at around 1.7 million tonnes this year, saying Codelco's smelter and refinery business may continue to perform badly in coming years and these problems with some operations could hit output at its Gaby mine.
The state-run miner expects prices to remain high for some time as it warned that geopolitical risks, aging mines, lower ore grade and the complexity of new projects posed a challenge for world supply.
And reconstruction after Japan's devastating earthquake should also have a positive effect on the market, Hernandez said.
"Japan is getting back on its feet fast and we think that overall it shouldn't have a negative impact and could have a positive impact due to reconstruction," Hernandez said.
Hernandez also sees copper demand benefiting from alternative uses in the future.
He sees potential future demand in the hundreds of thousands of tonnes for applications for copper in hospitals due to its antibacterial qualities.
Electric cars and wind farm towers are seen boosting demand in the nearer-term.
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