Codelco in Talks with Saudi Arabia on Copper Investments, Eyes Higher 2025 Output
Chile's Codelco explores joint ventures with Saudi Arabia as copper demand rises, while boosting production targets.
Codelco, the world’s largest copper producer, is in discussions with Saudi Arabia over potential joint investments in copper, the company’s chairman Maximo Pacheco revealed in an interview on Friday.
The talks come amid Saudi Arabia’s push to secure critical minerals for its growing battery and electric vehicle industries, part of Crown Prince Mohammed bin Salman’s strategy to diversify the economy away from oil reliance.
Speaking after the Future Minerals Forum held in Saudi Arabia, Pacheco highlighted mutual interest in adding value through collaborative investments.
He noted that discussions included meetings with Saudi Arabia’s mining minister and representatives from Manara Minerals, a joint venture between the Saudi Arabian Mining Company and the Public Investment Fund.
An announcement on potential agreements could be made in the coming months.
The talks also addressed technology transfer opportunities, with a focus on leveraging Saudi Arabia’s expertise in desalination and exploring the integration of artificial intelligence in mining processes.
However, while Saudi Arabia has expressed interest in Chile’s lithium resources, Codelco confirmed that Saudi firms are not among the shortlisted investors for a lithium project in the Maricunga salt flat.
A decision on that project is expected in March.
On the production front, Codelco expects its copper output for 2025 to rise by approximately seventy thousand metric tons, bringing total production to around 1.4 million tons.
This comes after the company accelerated production at the end of 2024 to meet its target of 1.328 million metric tons for the year.
Despite the progress, Codelco continues to face challenges, including declining ore grades and setbacks at key construction projects.
Saudi Arabia's interest in critical minerals such as copper and lithium aligns with its goal of becoming a regional hub for battery and electric vehicle manufacturing.
The ongoing talks with Codelco reflect a broader effort to secure the raw materials necessary for this transition.
The talks come amid Saudi Arabia’s push to secure critical minerals for its growing battery and electric vehicle industries, part of Crown Prince Mohammed bin Salman’s strategy to diversify the economy away from oil reliance.
Speaking after the Future Minerals Forum held in Saudi Arabia, Pacheco highlighted mutual interest in adding value through collaborative investments.
He noted that discussions included meetings with Saudi Arabia’s mining minister and representatives from Manara Minerals, a joint venture between the Saudi Arabian Mining Company and the Public Investment Fund.
An announcement on potential agreements could be made in the coming months.
The talks also addressed technology transfer opportunities, with a focus on leveraging Saudi Arabia’s expertise in desalination and exploring the integration of artificial intelligence in mining processes.
However, while Saudi Arabia has expressed interest in Chile’s lithium resources, Codelco confirmed that Saudi firms are not among the shortlisted investors for a lithium project in the Maricunga salt flat.
A decision on that project is expected in March.
On the production front, Codelco expects its copper output for 2025 to rise by approximately seventy thousand metric tons, bringing total production to around 1.4 million tons.
This comes after the company accelerated production at the end of 2024 to meet its target of 1.328 million metric tons for the year.
Despite the progress, Codelco continues to face challenges, including declining ore grades and setbacks at key construction projects.
Saudi Arabia's interest in critical minerals such as copper and lithium aligns with its goal of becoming a regional hub for battery and electric vehicle manufacturing.
The ongoing talks with Codelco reflect a broader effort to secure the raw materials necessary for this transition.