Nationalize the mines and other extraction industries like lumber and

Besides operating major deposits, Codelco has established its leadership by keeping one of the lowest production costs in the world, 39,7 cents per lb in 2007 (cash cost). This makes it possible to maintain a profit margin even during adverse market conditions.

From the viewpoint of commercialization, one of the key aspects is the existence of a portfolio of clients that is stable and geographically diverse.
Codelco is also a world leader in molybdenum production and sales. In 2007 it produced 27.857 metric tons of this metal, used mainly to make special steel alloys, which were commercialized in markets in Europe, Asia and Latinamerica

What is Codelco?
Codelco is the Corporación Nacional del Cobre de Chile

What is its importance?
Codelco is the main copper producer in the world. Also, it is one of the largest companies in Chile.

Who is its owner?
The Corporación Nacional del Cobre is 100% property of the Chilean State. All Chileans own it.

Why was it created?
The constitutional reform that nationalized copper, of july 11, 1970, established the transference to the State of all the big mining properties, which made necessary to create a company capable of exploting and managing them.

When was it founded?
The Law Decree Nº 1,350 of april 1st of 1976 created Codelco, a mining, industrial and commercial State company.

How is it organized?
Codelco has its Head Office in Santiago, Chile. The exploitation, processing and shipment operations are carried out by its Divisions: Codelco Norte Division (fusion of former Chuquicamata and Radomiro Tomic Divisions), Salvador Division, El Teniente Division and Andina Division.
Codelco also participates in mining, non mining and business associations with other companies and it has a network of subsidiaries and sale agents backing up its commercialization activities.

Who work at Codelco?
More than 18 thousand workers collaborate with Codelco.

Who directs the company?
Codelco has a Board of Directors which seven members are nominated by the President of Chile.
In turn, the Board nominates the Executive President which leads a senior staff formed by Senior Vicepresidents and ExecutiveVicepresidents.

What are its aims?
The Corporation has a strategy based on a vision of future, which implies displaying all of its business potential both in Chile and abroad to maintain its position of leader in the copper industry.

What are its products?
The main product of Codelco is refined copper in the form of cathodes which are 99.99% pure copper. The Corporation also produces copper concentrates, blister or anode copper and subproducts such as molybdenum, anodic slimes and sulphuric acid.
In Germany, Codelco also manufactures wire rod, a semimanufactured product that uses copper cathodes as raw material.

How much does it produce?
In 2007, copper production by Codelco reached 1.664.600 metric tons of fine copper (includes Codelco's share of El Abra). It also produced 27.857 metric tons of molybdenum, the main subproduct of the Corporation.

Does it have future reserves?
Codelco has some 77 million metric tons in copper reserves. These are the largest in the world. However, the Corporation has a permanent surveying activity to identify new possibilities of mining business both in Chile and abroad.

Who are its clients?
Codelco´s policy has been aimed at giving priority to refined copper sales to fabricators or producers of semimanufactured products. The Corporation views its clients as strategic partners.

What are its markets?
Copper leaves Chile for clients around the world. The main market is Asia (48%), followed by Europe (31%), Northamerica (13%) and Southamerica (8%) according to 2007 data.

How much copper does it sell?
In 2007 the physical sales of copper reached 1,665 million metric tons, own production.

What is the income from sales?
In 2007 the total income from sales of copper and subproducts reached 16,988 million dollars.

What is copper?
Copper is a metallic element found in nature. Its chemical symbol is "Cu" and its atomic number is 29.

Where is it exploited?
10,000 years ago, when man was leaving the the Stone Age, the exploitation of copper began. Since then it has been present throughout the development of civilization.

What is the importance of copper?
Copper has important properties for the development of societies: high electrical and heat conductivity, resistance to corrosion, durability, it can be recycled and, due to its attractive colour, has been used by craftmen and artists for thousands of years.
Also, health research has established that copper is essential fur all living organisms. We all need a daily dose of this element which, in the case of humans, we obtain through the food we eat.

Does copper have a future?
The development of new technologies ensures an increasingly efficient and sustainable production of copper. This makes possible to gain access to mineral deposits that could not be exploited before, while at the same time complying with the requirements of a society increasingly concerned with the environmental and social conditions of the planet. Beyond the increasing consumption of copper associated to progress and growth, this element has important application in new technologies that will play important roles in our future.

What is molybdenum?
Molybdenum is obtained from sulfide ores during the separation of copper. It is a metallic element required in the international markets since it is used for special steel alloys and other alloys with special properties of durability, strength and resistance to heat and corrosion. Codelco is one of the world´s main producers of molybdenum.

How do I contact Codelco?
To contact Codelco you may use the following postal address:


Web site : http://www.codelco.com/

Copper production and income before taxes since 1990?

YEAR 2007

COPPER PRODUCTION
(Thousands of metric tons) 1,665

INCOME BEFORE TAXES 8.451
(US$ million)

The state as a company owner

The Swedish state is an important company owner in Sweden. The Swedish
Government Offices administer 55 companies, of which 42 are wholly owned
and 13 partly owned. These companies represent substantial values and are
large employers. Furthermore, they are ultimately the common property of all
Swedish taxpayers. The state therefore has a considerable responsibility to be an
active and professional owner.

The Government´s overarching objective is that these companies should create value and, where
applicable, comply with the special societal interests. It is important that the state manages its
ownership role in a responsible way. As long as these companies are owned by the state, they shall
continue to be actively managed with the creation of value as the overarching objective. State
control must also be clear and well-focused. A professional and structured board nomination
process together with effective and active work on the board are important components of this
work. Other important tools of owner control are transparency and an efficient capital structure.
Part of being an active and responsible owner is to divest companies when there is no longer a
reason for continued ownership.

In 2006 the aggregated turnover for the state-owned companies amounted to SEK 339 billion and
the net profit amounted to SEK 55.3 billion. The dividend of the companies for the financial year
2006 amounted to just over SEK 37 million. The value of the state-owned companies administered
totalled around SEK 770 billion in June 2007.

Like other companies in the market, the state-owned companies encounter stiff competition and a
rapidly changing business environment. The Government´s ownership administration shall
therefore be clear and open and continuously adapted to the increased and changing demands
made.

The state-owned companies are subject to the same legislation as privately-owned companies.
Decisions concerning the companies comply with administrative rules at the Swedish Government
Offices. When considering matters, the regulatory framework for public access and secrecy are
applied, among other things.

Like other company owners the government has different tools to influence the companies. In the
State ownership policy the government present its position on certain important principles on the
administration of the state-owned companies, among other things the view on the AGM, the board,
the financial reporting, the executive management and their remunerations.