Santiago (Chile), June 23: Chile's government on Wednesday announced the decision to reinvest 30 percent of the profits generated by the state-owned copper corporation Codelco between 2021 and 2024 back into the company's projects.
President of Codelco's Board of Directors Maximo Pacheco hailed the government's move as a "historic" moment for the company. Until now, Codelco has for decades turned over 100 percent of its profits to the government coffers.
According to Chilean Finance Minister Mario Marcel, the reinvestment "would make it possible to control the level of indebtedness and reduce the company's financing costs and, to the extent that Codelco invests in good projects, it will also be a source of future profitability for the state."
As the world's leading copper producer, Codelco said that it aims to build structural projects that will ensure copper production of around 1.7 million tons per year for another 50 years.
With the newly announced reinvestment plan, which is expected to strengthen the company's financial balance, Codelco predicted that by 2030, new projects will account for 75 percent of its production.