SANTIAGO, March 28 (Reuters) - Chilean copper giant

Codelco reported gross profit of $3.12 billion for

2023, the state-owned producer said in a filing on Thursday, a

34% dip from a year earlier after the state firm faced

operational and production challenges.

Codelco, the world's top copper miner, posted production

of 1.325 million metric tonnes for the year - its lowest level

in a quarter century - according to the filing, compared to

1.446 million tons in 2022.

"2023 was a very difficult year in terms of operations

and production, but we are convinced that it was the lowest part

of a productive trough that will begin to improve this year,"

Chief Executive Ruben Alvarado said in a statement.

"Going forward, we expect positive news and a gradual

recovery until we return to our production level of 1.7 million

tons by the end of the decade," he added.

For 2024, the company predicted copper output would

remain steady at between 1.325 and 1.390 million metric tons,

and expected a capital expenditure of $4 billion to $5 billion.

A

Reuters investigation

published earlier this month showed that Codelco project

delays, accidents and deferred maintenance have all contributed

to its recent slump, as some workers pinned most of the blame on

poor management and planning.

The national mining company has also been tasked by the

government with leading future lithium projects in the South

American nation, and is negotiating public-private agreements.

The government of President Gabriel Boric has said it

will reserve for majority control via Codelco two of Chile's

most lithium-rich salt flats, Atacama and Maricunga.