Chile's Codelco to invest $16bn 2011-2015

SANTIAGO - Chile's state copper giant Codelco will invest over $16-billion between 2011-2015 and expects copper prices to remain strong in the long-term, the miner said on Thursday. Sand Making Machine

CEO Diego Hernandez said he expected copper demand from top consumer China to remain strong, and forecast tight supply in 2011 and 2012 would underpin prices.

"We think supply and demand should remain tight this year and next," Hernandez said. "We think prices will be pressured higher this year and next.

"As Chinese urbanization continues in the coming years, and everything indicates it will, demand for copper will remain at the levels we have seen."

Hernandez said the company would invest a record $3.2 billion in 2011 and will step up investment further in 2012-2013. He said the company was increasing investment in exploration, and was eyeing exploration projects in Brazil and Ecuador. Salt Crusher

He said Codelco could issue between $500 million and $700 million in debt or recapitalize profits in 2011, but said the state giant's debt levels should remain below $9 billion for it to hold on to its investment grade.