Codelco (Corporación Nacional del Cobre de Chile), the National Copper Corporation of Chile, is a major driver of the Chilean economy and the largest copper-producing company in the world. In addition to copper, they also produce small quantities of gold and other rare metals. These operations are carried out through its seven mining divisions: Chuquicamata, Ministro Hales, Radomiro Tomic, Gabriela Mistral, Salvador, Andina, El Teniente, as well as the Ventanas Smelter and Refinery.
Founded as the state Copper Office in 1951 by President Carlos Ibanez del Campo, Codelco’s roots run deep. Copper mining in Chile dates back for centuries, particularly at Chuquicamata, as evidenced by the discovery of the “Copper Man,” a mummy dated around 550 A.D. found in 1898 in an ancient mine shaft. Copper mining in the region began in earnest in the 19th century, and in 1971, the Chilean government nationalised the industry, with formal ownership finalised by decree on April 1st, 1976, under dictator General Augusto Pinochet.
Ruben Alvarado was appointed CEO on September 1st, 2023, and is leading Codelco forward with a focus on expanding its operations and diversifying into new markets. In May of 2023, the company began the construction of a massive desalination plant, designed to supply water to Radomiro Tomic, Ministro Hales, and Chuquicamata with desalinated water-a vital resource in Chile’s arid northern region.
In 2023, Codelco achieved several significant milestones. The company signed a joint venture agreement with Rio Tinto to explore and develop a copper project in the northern Atacama region. Ruben Alvarado also celebrated the achievement of The Copper Mark certification for Codelco’s mines, smelters, and refineries, a recognition of the highest sustainability standards in the industry. Additionally, construction of the Trepaso Andina was completed on April 2nd, with the delivery of secondary crushing to the operation, while the first phase of the Chuquicamata Underground infrastructure reached 56.2% progress.
Codelco’s forward-looking strategy is evident in its move into the lithium market. The company secured an agreement with SQM for the exploitation of lithium in the Salar de Maricunga, bolstered by its acquisition of Lithium Power International (LPI) in March 2023. This acquisition is poised to capitalise on the growing demand for lithium, ensuring Codelco remains competitive in this burgeoning sector. In addition, Codelco’s collaborations with Rio Tinto, El Abra, and Anglo American (owner of Los Bronces) continue to foster new opportunities, including the exploration and development of the Nuevo Cobre project in the Atacama region.
Thinking about what lies ahead, Ruben Alvarado envisions Codelco’s production growing steadily over the next decade. He predicts that annual production in 2024 will exceed that of 2023, driven by increased operational efficiency at the Andina concentrator, improved performance at the Chuquicamata underground mine, the commissioning of the Rajo Inca project, and better open-pit production at Ministro Hales. Alvarado is confident that Codelco’s production will enter a long-term growth trajectory, reaching 1.7 million tons per year by 2030.
Key to Codelco’s future growth is the Chuquicamata mine complex. The current open-pit operation is nearing its economic limit due to the declining quality of the accessible ore. However, the shift to underground mining, which began in 2019, will extend the life of the mine until 2060. The underground operation, using the block-caving method, features advanced infrastructure such as air-extraction shafts, clean air injection ramps, and a 7.5 km main access tunnel. The $4.2 billion investment in the underground operation will help produce 140,000 tonnes of ore per day, with a focus on copper and molybdenum production.
The El Teniente underground mine is another crown jewel of Codelco. With over 3,000 kilometers of underground drifts, it is the largest underground copper mine in the world. El Teniente is a key contributor to Codelco’s production, with approximately 350,000 metric tons of copper mined annually. The New Mine Level structural project, which began in 2011, will allow output to increase without interrupting current operations.
Advancements in technology are also playing a pivotal role in Codelco’s growth. The company is integrating robotics, automation, and advanced analytics to improve operational efficiency, reduce costs, and promote sustainability. Codelco is employing automated vehicles in several of its operations, including more than 40 Sandvik autonomous loaders and trucks at El Teniente, which are now equipped with the AutoMine® Fleet system to support large-scale, complex automation in challenging environments.
In 2023, Codelco expanded its autonomous fleet with the addition of the Sandvik Toro™ LH518iB loader. This new, 100% electric, semi-autonomous loader, which boasts zero direct greenhouse gas emissions and 80% greater tractive force than its diesel counterpart, is expected to play a major role in the company’s goal of achieving carbon neutrality by 2050. The loader is currently on trial, with a full deployment anticipated by the first half of 2025.
Codelco’s focus on innovation extends to its collaborations with Komatsu, Nippon Yusen Kabushiki Kaisha, and Enaex. Notably, the company is working on a green corridor initiative to transport copper concentrates using ships powered by green ammonia, further advancing its sustainability goals.
In addition to the autonomous vehicles and electric loaders, Codelco recently trialled Epiroc’s ST14 Battery LHD in 2022/2023 at El Teniente’s Diablo Regimiento mining sector, where it was successfully integrated into the existing fleet. The ST14 Battery loader is now automation-ready and has been renamed the ST14 SG. As Codelco continues to embrace automation and clean energy technologies, its efforts to build a greener, more efficient operation are set to continue.
With its ongoing focus on sustainability, technological innovation, and the expansion into lithium production, Codelco is positioning itself as not only a leader in copper but also a key player in the green energy transition and the global mining industry’s future.