Exclusive: Chilean miner Codelco says copper price spike will bolster war chest, raise costs – Reuters.com


SUBMIT PHOTO: An employee monitors a procedure at the Codelco Ventanas copper smelter in Ventanas, Chile, January 7, 2015. REUTERS/Rodrigo GarridoSANTIAGO (Reuters) – Chiles state-owned Codelco, the worlds largest copper producer, views recent spike in the cost of the red metal as a “excellent chance” to produce cash for financial investments and hold down debt, however warned it could also increase the miners expenses, a senior executive informed Reuters on Monday.The rate of copper shot above $9,000 a tonne for the very first time on Monday considering that 2011, as a nascent worldwide financial recovery has actually triggered need to flourish for the product, vital to international construction and production sectors.Codelco vice president of sales Carlos Alvarado stated the growing expectations would likely also stimulate goods and provider to trek rates, leading to higher general expenses for the state-run miner.The executive stated it was still “prematurely” to know if the spike in the worldwide copper rate represented a brand-new “super-cycle,” similar to that seen in the early 2000s following a tectonic need boost from industrialization and urbanization in emerging nations.Reporting by Fabian Cambero, writing by Dave Sherwood; Editing by David Gregorio


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