Codelco confronts rising debt and slumping copper output

Chile’s state‑run copper miner Codelco is showing warning signs. Production fell to 332,000 tonnes in 2025, far below the 1.7 million‑ton peak in 2017, and the first quarter of 2026 was its weakest in two decades. Debt rose to US$26.3 billion, about 50 % higher than in 2021, while cash‑flow from operations generated US$3.9 billion in 2025 but was outweighed by investment and interest outlays exceeding US$6.1 billion. The company’s recurring profit barely reached US$416 million despite record copper prices.

Credit agencies rate Codelco in the Baa2 to BBB+ range, noting that without state backing the rating would fall to junk level. Analysts advise tighter mining plans, longer‑term debt restructuring, and stronger governance to stabilise the firm’s finances.