Businesses and Subsidiaries

 

Codelco participates as majority or minority shareholder in many companies and joint ventures associated to the mining business.

As at 31 December 2010, Codelco had a network of 49 subsidiaries and related companies, with a workforce of 1,149 people.

Business and Subsidiary Management looks after Codelco’s interest in these companies and also searches for new business opportunities with third parties and supports its implementation. This management focuses on:

•  Searching for, assessing, and implementing business opportunities in partnerships with third-parties, acquisitions, mergers and asset sales.
•  Representing and ensuring Codelco’s interest in the partnerships in which it holds a stake.
•  Contributing to the creation of value in the Company’s partnerships.

 

New businesses

In 2010, progress was made in the investments required to develop the sulphide project at SCM El Abra, where Codelco holds a 49% stake.

On average, this project will produce 136,000 tonnes of copper over a 10-year period and will offset the reduction of oxide minerals currently extracted by the Company. Operations are scheduled to start in 2011. In 2010, El Abra’s production was 145,166 metric tonnes of copper.

In 2010, the Board of Codelco approved the incorporation of PanAust Limited to Inca de Oro S.A., to develop the Inca del Oro copper deposit in the 3rd Region of Atacama. During the period, the Company was waiting for the Constitutional and Legislative Review of the Supreme Decree to be signed by the Comptroller General of the Republic. The transfer was completed on 22 February 2011.

During the second half of 2010, Codelco entered into an earn-in agreement with Antofagasta Minerals, and exploration work was started at the Cumbre prospect located in Chile’s Antofagasta Region.

In 2010, Codelco and Suez Energy Andino S.A. consolidated the merger of their power assets in the SING electricity grid (Norte Grande power grid): Edelnor S.A., Electroandina S.A., Gasoducto Nor Andino S.A., Central Térmica Andina and Central Térmica Hornitos. As a result of this merger, Codelco retained 40.27% of its interest in the merged company, called E-CL S.A. This merger process was an important step for Codelco, since it then sold its stake in the resulting company (E-CL S.A.). This process was undertaken in January 2011.

GNL Mejillones S.A. decided to commence the construction project for a natural liquefied gas ground storage tank, and therefore will permit the use of gas in the future and also diversify the SING power network, among other benefits. Codelco reduced its ownership in GNL Mejillones from 50% to 37%, as a result of the formula to fund this project.