SANTIAGO, April 25 (Reuters) - World No. 1 copper producer Codelco will scale back plans for its Rajo Inca project, intended to extend the mine life of its Salvador deposit, and an investment decision will be made within two years, the company's chief executive said on Monday.
Chilean state-owned Codelco is slashing spending by $6 billion over the next five years in the wake of a steep fall in the price of copper, significantly reducing its targeted output.
"We're going to modify Rajo Inca," CEO Nelson Pizarro told reporters. "Originally we were looking at 130,000 tonnes (of processing) per day ... likely in about five years time we'll start processing from Rajo Inca at a rate of between 35,000 and 40,000 tonnes per day.
"Now we're going to take a little longer to see if we do that project, and if we do, at what level of production," Pizarro added.
Salvador is Codelco's smallest copper mine. It produced 49,000 tonnes in 2015. (Reporting by Gram Slattery; Writing by Anthony Esposito; Editing by Leslie Adler)