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Codelco Jan-Sept output 2% above same period of 2024

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Internal El Teniente investigation to be finalised by

end-2025

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Codelco to monitor terrain structure through entire mine

By Pratima Desai

LONDON, Oct 10 (Reuters) - Codelco's copper losses from

the accident at its El Teniente mine are likely to be 45% higher

than previously estimated, but Chairman Maximo Pacheco still

expects the world's largest copper miner to slightly increase

output this year.

Loss of output from Chile's El Teniente along with other

disruptions including at Freeport-McMoRan's ( FCX ) Grasberg

mine in Indonesia has tightened supplies and pushed copper

prices to $11,000 a metric ton this week, close to the

record hit last year.

The July accident at El Teniente, Codelco's most profitable

mine, will reduce its output by 48,000 metric tons this year and

cost the company around $500 million in EBITDA.

In an interview ahead of LME Week, a gathering of the global

metal industry in London, Pacheco said Codelco's production from

January to September was 2% above the same period of last year.

"We continue to believe that in 2025, we should have a

production level that is slightly above last year's," he said.

The state-owned miner's copper output for the first nine

months of the year was 938,000 tons while Codelco's guidance for

2025 is 1.34 million-1.37 million tons.

ROCK BURST

On the internal investigation into the El Teniente accident,

due to be finalised by the end of the year, the most probable

cause was a rock burst due to a change in the geological

structure of the deposit, according to Pacheco.

"This was a process of vertical unloading due to geometric

changes and cavity interaction in the northwest of the

deposit...weakening the structure and facilitating downward

movement of material. This means at depth, rock layers are

shifting over one another," Pacheco said.

That, he added, means Codelco needs to monitor terrain

structure, seismic activity and geomechanical factors throughout

the entire mine, which is made up of 4,500 kilometers of

tunnels.

The Andesita unit within the El Teniente complex will remain

suspended until the investigation is complete.

ENVIRONMENTAL PERMITS

Codelco plans to apply for environmental permits by 2027 for

the joint operation of its Andina mine and Anglo American's

neighboring Los Bronces operation, Pacheco said. The companies

finalised their agreement last month, saying it will produce $5

billion in savings.

Pacheco also said Codelco will contribute to discussions on

the future of Teck Resources Quebrada Blanca mine in

Chile, where it holds a 10% stake and has two seats on the

mine's board.

Teck is aiming to combine Quebrada Blanca with the adjacent

Collahuasi mine as part of a proposed merger with Anglo American

.