The world's largest copper producer Codelco cuts production

Chilean state-owned copper company Codelco said it produced slightly less copper from January to September 2017 than in the same period a year ago, but profits recovered year-on-year as metal prices improved.

According to ratings agency Moody's, based on the company's annual release through June 2017, Codelco remains the largest copper producer in the world.

Codelco CEO Nelson Pizarro said the company produced 1.24 million tonnes of copper in January-September, down 3 percent from the same period last year.

He added that the company posted earnings of up to $ 1.6 billion in the first nine months of 2017, compared with a loss of $ 18 million the previous year.

Direct cash costs to September rose to $ 1.32 per pound of copper from $ 1.27 in 2016 as the quality of the ore grades declined, which has been a problem in Chile for many years.

Codelco, which transfers all of its profits to the government and relies on capitalization and some debt to fund its operations, is emerging from a prolonged rough drop after the 2016 copper price crash, consuming profits and cutting short-term investment plans.

Copper prices have risen sharply in recent months due to strong supply and demand problems in China. Codelco, like other copper miners, is restoring projects that were previously abandoned.

The company says it plans to invest $ 4 billion a year to upgrade its aging mines, expand overseas and maintain production.