Chile’s Finance Ministry has announced to provide $600m in funds to copper mining company Codelco to finance its investment plans.
Codelco chief executive Nelson Pizarro said: "We are very satisfied with the state support our ambitious development plan, demonstrated in the capital contribution of $600m.
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"These resources, combined with the placement of bonds held last September, allow us to ensure the financing of this and next year, considering the adjustment of the programming of the investments in progress."
The capitalisation will enable the company to face the financial challenge of its investment plan.
Pizarro added: "This amount significantly strengthens the balance sheet of the company, essential to maintain access to financing in the future in very competitive conditions consistent with our high credit rating, as it has been until now look."
According to Codelco, the capitalisation law, which was enacted in October 2014, established the contribution of up to $4bn to the company during 2014 to 2018.
Up to $3bn of the total amount will be contributed directly by the treasury and the remaining will come from the profits generated by the company each year, Codelco said.
Codelco plans to use the funds to reduce costs and improve productivity, in addition to developing projects to ensure the return on investment in Chile.
Image: Codelco will use the funds to finance investment plans. Photo: courtesy of Stoonn/FreeDigitalPhotos.net.
