(Reuters) – Chilean state-owned mining company Codelco is optimistic about prices for 2022 boosted by higher demand, its president Maximo Pacheco said on Friday during a press conference.

Pacheco said after meeting shareholders Mario Marcel, Finance Minister Mario Marcel and Marcela Hernando that the optimism comes from a global trend towards sustainable energy transformation. In which copper is an important metal,

Pacheco stated, “We know electrification is going to continue as a result climate change and global heating.”

Pacheco said that while there were challenges facing the company, Pacheco and ministers also highlighted the need to reduce production costs. They added that they are also promoting a project portfolio worth $40 Billion in “structural initiatives”.

Marcel noted that “both factors are going to increase Codelco’s contribution to structural income aus mining,” and added that higher copper prices could also be beneficial.

Hernando was the mining minister of Colombia. She said that she is happy with economic results but targeted some companies.

Hernando stated that while we were happy with economic results, “we are aware of the many challenges” and most of these have to do with cost restructuring. We are exhibiting bad behaviour towards other companies within the industry.

Pacheco said that the government was trying to figure out a way Codelco (which gives its profits away to the state) can use the resources it earns to fund its investment plans. The company has been financed mainly with debt and depreciation.

Pacheco explained that it was necessary to revise this criteria in order to find out if the shareholder, which in this case is the Chilean State, could reinvest part the profits in the company in order to continue the projects.