Codelco 9-month copper production jumps 16%

Net profit for the period declined to less than half the amount recorded for the same period a year earlier

SANTIAGO (Reuters) - 

Chile's state-owned Codelco, the biggest copper miner in the world, said on Thursday its copper production rose 16% in the January-September period compared with a year earlier.

Net profit at Codelco before taxes and extraordinary items totaled $2.06 billion in January-September, less than half the amount registered a year earlier.

Codelco's copper output in the nine-month period totaled 1.21 million tonnes, the company said in a statement handed out at a press conference.

Including the company's 49% stake in El Abra mine, production totaled 1.27 million tonnes. Freeport-McMoran (FCX.N: Quote, Profile, Research) controls El Abra.

The increase over last year's output was due to higher production at its Codelco Norte, Salvador, El Teniente and Gaby mines, the company said.

Production at Andina was unchanged.

Cash costs averaged 92.4 U.S. cents per lb in the period. Total production cost in the year to date was US$1.58 per lb, down from $1.81 per lb in the same period last year.

"The negative effect of lower prices was partially offset thanks to greater copper production and a decrease in costs and total expenses," said Codelco Chief Executive Jose Pablo Arellano.

Arellano said he hoped labor negotiations scheduled to begin soon at Codelco mines would "conclude satisfactorily." (Reporting by Antonio de la Jara; writing by Louise Egan; Editing by Lisa Shumaker)

© Thomson Reuters 2009 All rights reserved

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