Chile's Codelco debt woes and Chinese investment boost Argentina's lithium sector

Chile's state copper miner Codelco reported a sustained decline in copper output while facing rising costs and a sharply weakened cash flow. Under new board president Bernardo Fontaine, the company disclosed a gross debt of $26 billion, including $8.7 billion raised recently, and a drop in annual contributions to the state from $12 billion (2018‑2021) to $7 billion (2022‑2025). To improve liquidity, Codelco is evaluating asset sales, public‑private partnerships and other measures. The firm also highlighted its lithium partnership with SQM at the Novandino project, which raised production by 30 % this year, sold 62,000 tonnes of refined lithium at an average $17 per kilogram, and paid Codelco $290 million.

In parallel, Chinese miner Zijin Mining secured US$709 million in financing to expand its Argentine lithium operations under the country's Régimen de Incentivo para Grandes Inversiones (RIGI). The regime offers 30‑year fiscal stability and guarantees dividend repatriation, aiming to attract long‑term capital to the lithium triangle of Salta, Jujuy and Catamarca. The investment is one of the largest Chinese capital commitments in the region in 2025, reflecting confidence in high lithium carbonate prices and the sector's growth potential.