(This story was updated on Wednesday at noon)
The Chilean government wednesday cancelled the privatization of state mining giant Codelco, the world’s largest copper producer, after a small organization of lawmakers ran for sale and raise the budget for the coronavirus response.
Chile’s and unionized Chamber of Mines rejected the proposal of far-right deputies to sell Codelco.
The plan, presented in an internal memorandum to members of the Independent Democratic Union (IDU) party, generated complaints from unionized representatives and workers.
“Codelco is Chile’s largest company in terms of contributions to government coffers and the country’s pride,” Manuel Viera, president of Chile’s Mining Chamber, told the media.
Codelco, nationalized in 1971 through socialist president Salvador Allende, donates all profits to the state
He said it was “inconceivable” and “irresponsible” to turn to the mining industry whenever the country has a problem, adding that the sector deserves not to be seen as a “dairy cow” but as an engine of development.
The Copper Workers Federation (FTC), which includes Codelco’s unions, threatened national unemployment if the government made the decision to promote the company.
The internal document of the IDU noted that Codelco, nationalized in 1971 through socialist President Salvador Allende and now delivering all its profits to the state, had a market of about $50.5 billion in 2014.
“Privatization of the company would generate a very applicable source of profit for the state, which could be used simply for social benefits. In addition, privatization could continue to generate profits for the state through the collection of taxes and royalties,” the memo says. Says.
At the time, it noted that the public copper manufacturer’s operating prices accounted for almost 47% of its overall prices. By contrast, the prices of BHP’s Escondida copper mine accounted for about 19% of total expenditures at that time.
The coronavirus pandemic affected Codelco’s ambitious 10-year mining reform and $40 billion to production rates.
The miner has already completed one of its projects: the conversion of $5.6 billion from the Chuquicamata open pit mine into an underground operation.
In June, however, Codelco closed the Chuquicamata smelter and refinery to save it with additional covid-19 spread among its staff. The company has recorded a total of 3215 cases shown and nine deaths from the virus.
The coronavirus pandemic affected Codelco’s ambitious 10-year mining reform and $40 billion to production rates
The country has been one of the most affected in Latin America. It showed 349,800 cases and more than 9,000 deaths, according to consolidated figures from the World Health Organization and Johns Hopkins University.
Codelco also suspended a new $5.5 billion point at the El Teniente underground mine. The operation, the largest of the corporate and not global. 6 up to the size of the reserve, originally scheduled to begin mining in the new segment in 2023.
Work on all projects in the northern district of Codelco was suspended, adding Gaby, Minister Hales and Radomiro Tomic.
Notable plans relate to the conversion of the El Salvador mine to an open pit mine of underground operations. The $1 billion project, known as Rajo Inca, is expected to increase the production life of the mine over 40 years and increase production by 30% of existing levels.
Salvador is Codelco’s smallest division. Last year, it produced 50.6 billion tons of copper, 16.8% less than in 2018.
The copper giant’s structural allocation reserve also includes the $1.3 billion of the Andean mine. The transaction accounted for about 11% of Codelco’s production in 2018.
Codelco operates seven mines and 4 smelters, all in Chile. Its assets account for 10% of the world’s shown and likely reserves and about 11% of the world’s annual copper production, with 1.8 million tonnes of production.
(With Reuters files)
Why are others who need to privatize a government-run mine thought to be “far right”? The El Teniente mine was evolved and, first, personally owned for more than 60 years. Most of the world’s mines are personally owned, basically because it is much less difficult to leave a mine blank and if a government oversees a personal company. Capitalists deserve to never be considered “far-right,” it’s a communist statement.