Chile to reinvest all of Codelco's 2025 profits in debt-laden copper miner
SANTIAGO - Chile will reinvest all of State-owned copper miner Codelco's 2025 profits into the company, Mining Minister Daniel Mas said on Monday, boosting funding for a producer grappling with a heavy debt load and the costly task of overhauling aging mines.
Codelco, one of the world's largest copper producers, transfers its profits to the State, which then decides how much capital to return to the company.
Speaking at an event, Mas said that the government would return all of Codelco's profits from last year for the company to invest, a large jump from the 30% assigned by the previous government for 2024's profits.
Government officials said the move marked the first time in Codelco's history that the Chilean State would channel all profits back to the company. Codelco was created out of the nationalization of the copper industry in 1971.
Codelco chairperson Bernardo Fontaine said the timing was critical.
"It gives us great support just at the time when we have to work to implement a deep recovery plan for Codelco," he said.
The move comes as Codelco seeks to shore up its finances while advancing multibillion-dollar structural projects needed to reverse years of production declines and extend the life of some of Chile's largest copper deposits.
Codelco reported a net profit of $2.4-billion in 2025, helped by stronger copper prices and income from its lithium partnership with SQM. Despite the improved results, the company ended the year with net debt of $25.1-billion.
The miner has faced mounting scrutiny over rising debt, higher operating costs and delays at key projects after years of declining ore grades and lower output. Its finances came under further pressure after a fatal accident last year disrupted operations at El Teniente, its flagship mine.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Projects
Latest Multimedia
Latest News
Showroom
ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
