Codelco participates as majority or minority shareholder in many companies and joint ventures whose activities directly or indirectly leverage the Company main business. Hence this participation is concentrated in mining, research and technology, health, electricity, new uses of copper, molybdenum and other by-products. In 2011, Codelco�s subsidiary and associated company network totalled 53 companies and one health foundation.

Business and Subsidiary Management looks after Codelco�s interest in these companies and also partakes in the decision-making process to increase its value; it also searches for new business opportunities with third parties. Its key tasks are as follows:

Financial Results

In 2011, associated companies reported US$ 353 million in profits, up 16% from 2010.

Subsidiary and Associated Company Management

Sale of E-CL S.A.

Codelco held a 40% interest in E-CL S.A., an electricity company in the Norte Grande power grid (SING).

In January 2011, Codelco sold its stake for US$ 1.038 billion, retaining 100% of the sale to finance its investment programme.

Joint Ventures with International Companies

In February 2011, the Chilean State authorised Codelco to transfer 66% of its Inca de Oro deposit, in the Region of Atacama, to the Australian miner Pan Aust. The process was undertaken in conformity with Law 19.137 that allows Codelco to enter into partnerships with third parties to develop mining projects. Inca de Oro deposit contains inferred and indicated copper and gold resources, equivalent to 259 million tonnes, and an ore grade of 0.46% copper and 0.13 g/t gold. Asociaciones con empresas internacionales En febrero de 2011, el Estado de Chile autorizó a Codelco a traspasar el 66% del yacimiento Inca de Oro, en la Región de Atacama, a la minera australiana Pan Aust. El proceso se realizó conforme con lo establecido en la Ley 19.137, que permite a Codelco asociarse con terceros para el desarrollo de proyectos mineros. Inca de Oro es un yacimiento que contiene recursos inferidos e indicados de cobre y oro, equivalentes a 259 millones de toneladas, con una ley de mineral de 0,46% de cobre y 0,13 g/t de oro.

In 2011, Codelco also entered into a joint venture with LS Nikko, the most important non-ferrous company in Korea in order to study the construction of a noble metal plant in Chile.

Sulphide Mining at El Abra

Codelco owns 49% of the mining company SCM El Abra; its oxide ores were depleted in 2010.

In January 2011, the company began mining sulphide ore. The company estimates a throughput of 136,000 tonnes of copper per year. Total production was 124,332 tonnes of copper in 2011.

Natural Gas Storage at Mejillones

GNL Mejillones S.A., Codelco has a 37% interest in this company, continued building the natural gas storage tank, scheduled to be completed by September 2013. At present liquefied natural gas is stored in a tank ship in the Port of Mejillones.

New Businesses

In 2011 the following subsidiaries and associated companies were created:

Promoly Ltda.: Company that will be dedicated to studying the construction of a molybdenum concentrate processing plant. Codelco has a 100% interest.

Copper for Energy S.A.: The goal of this company is to create new products for the energy industry, a copperintensive industry. Codelco has a 25% indirect interest.

Furthermore, in order to develop significant assets related to the mining business or activity, in 2011 Codelco constituted the following companies in which it has a 100% direct or indirect interest:

 

↑ Go Up