Codelco, Saudi in talks on copper investment, 2025 production seen
By Pesha Majid
RIYADH (Reuters) – Chile’s Codelco, the world’s largest copper producer, is in talks with Saudi Arabia about possible joint investments in the metal, the company’s chairman told Reuters in an interview on Friday.
On Codelco production, Chairman Maximo Pacheco said the company’s 2025 production is expected to increase by about 70,000 metric tons to 1.4 million tons.
According to Pacheco, the state-owned company has been in discussions with Saudi Arabia since there is a clear interest on both sides to add value.
“We are very open to considering joint investment opportunities,” Pacheco said in an interview following the kingdom’s annual Future of Mining Forum gathering of mining experts.
Saudi Arabia has been pursuing key minerals, including copper and lithium, to become a hub for batteries and electric vehicles as part of Crown Prince Mohammed bin Salman’s plan to wean the economy off oil.
Pacheco said he spoke with Saudi Arabia’s Minister of Mines and representatives of Manara Mine, a joint venture between the Saudi Arabian Mining Company and the kingdom’s $925 billion Public Investment Fund.
He said he believes that an announcement will be made from the discussions in the coming months.
“The markets move very fast. So obviously we have to move fast as well,” said Pacheco.
He said that he discussed technology transfer with Saudi Arabia and pointed out the country’s experience in desalination. The two sides also discussed introducing new technologies, such as artificial intelligence, into mining.
Saudi Arabia’s Minister of Mines, Bandar al-Qurayaf, previously told Reuters that Saudi Arabia was interested in Chile’s lithium assets.
Codelco is seeking a partner in a major lithium project in the Maricunga salt flats. Pacheco said that the company has shortlisted investors and Saudi companies were not on this list.
In March, the board proposed to vote on the project.
Decreasing mining results, accidents and errors in major construction projects, Codelco has been struggling to lift output from a 25-year low and rev up production at the end of the year to reach its 2024 target of 1.328 million metric tons.
(Reporting by Pesha Majid; Editing by Veronica Brown and Thomas Janowski)