MercoPress. South Atlantic News Agency

Copper's 7 billion US dollars for Chilean coffers

Over seven billion US dollars will end in the Chilean Treasury in 2005 as a consequence of the booming prices of copper and molybdenum, with Codelco, the government owned company providing 5,3 billion US dollars.

Overall copper and molybdenum sales will total 22 billion US dollars, over half of which 11,9 billion from Codelco.

Private mining companies will be providing the Chilean government 1,9 billion US dollars in taxes, 850 million above last year.

The "glamorous" year for the copper industry is the result of the booming demand and international prices, which are estimated to average 1,64 US dollars per pound in 2005, 34 US cents above last year's also excellent value.

Demand for copper in 2006 is expected to continue very strong.

Regarding molybdenum this year's average price is estimated to remain at 32 US dollars the pound, similar to last year, but double the average two years ago.

World steel production, particularly in China which in the last 18 months has turned into the main global exporter, after being the leading importer, has had a direct price impact for this metal, a by product of copper refining.

Chilean copper production this year is estimated to reach 5,4 million tons, similar to the 2004 volume.