Reuters reported that Chilean state miner Codelco has no plans to use a local debt line in 2009 after receiving USD 1 billion in government financing to fulfill its investments.
Mr Jose Pablo Arellano chief of Codelco confirmed that the local debt shelf worth around USD 400 million was not needed this year as analysts predicted after the extra funding was approved.
Mr Arellano said when asked when it could be used that "In coming years. What's important now is that we have that additional USD 1 billion in capitalization." He said that the funds could be disbursed as early as November. Earlier this week Congress approved a bill to unlock the funds which were linked to a government USD 4 billion stimulus plan launched in January to battle the ravages of the global financial crisis.
The law languished for months in Congress, prompting Codelco executives to ponder a debt sale to finance investments in 2009. In June, Codelco registered a local debt shelf for around USD 400 million worth of bonds. The company, which plans to invest USD 2 billion this year, already sold USD 600 million worth of 10 year notes in January when copper prices tanked after reaching record highs in 2008.
Codelco has lost ground against private companies and seen its output stagnate since 2004 due to aging mines and lower ore grades. The company produced 1.54 million tonnes of copper in 2008.
(Sourced from Reuters)
