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Santiago, Jan 16 (Reuters) - Codelco made significant efforts to increase its copper production from a 25-year low at the end of 2024. However, union workers and analysts are questioning the sustainability of its methods as it aims to achieve an annual output of 1.7 million metric tons by the end of the decade.

In 2024, Codelco's production was at the lower end of its target range, just slightly higher than the quarter-century low in 2023, as per an internal document seen by Reuters.

Interviews with four workers revealed that the company had reduced downtime, altered shift schedules, and raised production goals while postponing some necessary maintenance until 2025 in a second-half push.

Analysts raised concerns about the depletion of Codelco's reserves to meet its targets and highlighted the necessity for new mines or copper sources to compensate for the deterioration of minerals in aging facilities.

An equipment operator at Chuquicamata, one of Codelco's largest mines, remarked on increased pressure in the latter half of 2024 to minimize interruptions and prevent incidents that could halt operations.

Despite acknowledging maintenance delays at key smelters in Chuquicamata and El Teniente, Codelco stated it had conducted scheduled maintenance at Chuquicamata in December and ongoing maintenance at the Caletones smelter at El Teniente until February.

Regarding the delayed maintenance in various areas, Codelco emphasized ongoing efforts to address operational challenges and meet production targets for 2025.

Chairman Maximo Pacheco disclosed that Codelco achieved its highest production month since 2019 in December, though analysts questioned the company's use of reserves to boost output.

Looking ahead, analysts foresee challenges in advancing major projects such as Chuquicamata Underground and El Teniente, crucial for Codelco to reach its annual production goal.

In its latest update, Codelco mentioned delays in the initiation of new phases at El Teniente. The start of extraction at Andesita and Andes Norte has also been postponed.

Analyst Cristian Cifuentes highlighted ongoing challenges at the Ministro Hales mine and noted a slower-than-expected progress at Chuquicamata Underground, expressing doubt about Codelco's ability to meet its production targets.

Data provided by the company suggested that Codelco's improved 2024 performance was partly due to the Salvador mine coming online, contributing significantly to the output.

Analysts speculated that Codelco's acquisition of a stake in Teck's Quebrada Blanca mine might further boost its output, though concerns remain about addressing mineral depletion without exploring new areas.

Annual investments by Codelco, estimated between $4 and $4.5 billion, have yet to reverse the trend of falling figures, posing a challenge to the company's future production goals.