Codelco, China Minmetals eye joint exploration

Chilean state copper giant Codelco and China's Minmetals are studying mining prospects with a view to joint exploration projects in Asia and Latin America, Mines Minister Santiago Gonzalez said on Monday.

China Minmetals Corp announced last year it would seek business opportunities globally with Codelco after agreeing to give up the right to buy about half of the Chilean company's newest mine, Gaby, in northern Chile.

'(The companies) are evaluating mining prospects at the moment. They are still not conducting any actual exploration as such, but we know that they are evaluating and analyzing some mining prospects in some parts of the world,' Gonzalez told reporters.

Gonzalez spoke after meeting with a visiting delegation of Minmetals officials, who are due to hold separate meetings with counterparts at Codelco and other mining companies.

'Codelco has just opened an important office in Shanghai, through which a commercial as well as Asia mining exploration strategy will be developed, and ideally a big part of that will be developed with Minmetals,' Gonzalez added. 'We also have some prospects in Latin America.'

China is the world's No.1 copper consumer, accounting for 1.2 million tonnes of Chile's annual copper exports. Chile produced 5.33 million tonnes of copper in 2008.

China, which consumes about 25 percent of the world's copper, is eager to get its hands on direct sources of the metal to guarantee supplies for massive infrastructure development.

Production at Chile's Codelco, the world's largest copper producer, has declined in recent years as ore grades fall at aging mines. Codelco is investing heavily in expansions at existing mines, but in recent years has inaugurated only one new mine, the Gaby pit.

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