Chile's Codelco, the largest copper producer globally, is currently engaged in discussions with Saudi Arabia regarding potential joint investments in the metal, as confirmed by the company's chairman in an interview with Reuters on Friday.
Chairman Maximo Pacheco mentioned that Codelco's production is projected to increase by approximately 70,000 metric tons to approximately 1.4 million tons by 2025.
Pacheco emphasized the mutual interest in adding value on both sides, stating, "We would be very open to considering joint investment opportunities," during an interview post the kingdom's annual Future Minerals Forum.
In alignment with Crown Prince Mohammed bin Salman's strategy to diversify the economy away from oil, Saudi Arabia is actively pursuing critical minerals like copper and lithium to become a center for battery and electric vehicle manufacturing.
Pacheco revealed discussions with the Saudi mining minister and representatives from Manara Minerals, emphasizing hopes for forthcoming announcements from the talks in the following months due to the fast-paced nature of markets.
Acknowledging Saudi Arabia's expertise in desalination, Pacheco highlighted conversations about potential technology transfers, including the integration of artificial intelligence in mining operations.
Moreover, Saudi Arabia has expressed interest in Chile's lithium reserves, although Codelco is exploring partnership opportunities for a significant lithium project in the Maricunga salt flat, with Saudi companies not currently on the shortlist of potential investors.
The board is expected to vote on the project in March, as Codelco strives to boost production from 25-year lows, address challenges such as declining ore grades and construction mishaps, and meet its 2024 production target of 1.328 million metric tons.