SANTIAGO, April 7 (Reuters) -

Codelco, Chile's state-owned copper producer, boosted

production in the first three months of 2025 and was still

bullish about long-term prospects for global demand despite an

escalating trade war

between the U.S. and China, Chairman Maximo Pacheco said on

Monday.

The world's biggest copper producer registered slightly

higher output in the first quarter of the year than in the same

period in 2024, and is maintaining production guidance even

after a national power outage in February crimped output.

"We will have a first quarter that will be slightly higher

than the first quarter of last year," Pacheco said in an

interview ahead of the CESCO and CRU copper industry conferences

in Santiago.

Codelco is targeting production between 1.37 million and 1.4

million tons of copper this year as it aims for a second year of

increased output following a quarter-century low in 2023.

Pacheco said he remained confident about long-term copper

demand due to the needs of the global energy transition, despite

short-term volatility in commodities markets following sweeping

tariffs imposed by U.S. President Donald Trump.

"I am convinced that the long-term fundamentals are very

solid, very difficult to change," Pacheco said. "I can

understand the nervousness, the markets, and the people

experiencing all this turbulence, but we operate in a different

circuit."

He added that Codelco was seeking to maintain flexibility as

global needs fluctuate. The company last week said it had been

sending more spot sales to the U.S., as buyers aimed to

stockpile copper ahead of potential tariffs.

"We have to have a flexible, diversified vision, and with

good service to our clientele," he said.

Codelco is also seeking to deepen ties with India,

following a visit to the country led by President Gabriel Boric

last week, and a supply deal with Adani Group.

"We will continue to increase our business in India,"

Pacheco said.

The company is also in talks with Saudi Arabia, which

Pacheco described as very interested in copper and lithium, both

critical for electric car manufacturing.

"They have a lot of interest in Chile and within Chile, a

lot of interest in Codelco."

Chile's several-hour blackout in February, which led to

mining stoppages countrywide, cost Codelco about 5,000 to 7,000

tons of production, but the miner managed to recover the

shortfall, he said.

"It will not mean that the production of the quarter will

fall in relation to last year," he said.