Codelco to Cut Costs by $1 Billion in 2015

Reuters reported that in 2015, major miner Codelco plans to cut its costs by $1 billion. Chief Executive Nelson Pizarro made the announcement Friday.

As quoted in the market news:

It is seeking to cut direct cash costs by some $0.193 per pound of copper at its operations, Pizarro told journalists. In the January through September, Codelco’s cash costs averaged $1.537 per pound.

Still, none of the Chilean state-run copper miner’s large investment projects will be at risk and no personnel will be laid off, Pizarro said.

Instead, the company will look to implement efficiencies by such measures as the renegotiation of energy contracts, its task eased by slumping oil prices and a Chilean peso that has weakened around 25 percent versus the U.S. dollar over the last two years.

Click here to read the full Reuters report.