Codelco to capitalize US$2.422 billion in 2025 profits

Chilean Biminister of Economy and Mining, Daniel Mas, detailed the decision to capitalize 100% of Codelco’s 2025 profits, totaling US$2.422 billion. The funds will remain within the state-owned copper producer to support operational continuity, manage debt, and fund its investment portfolio.

Mas noted that global copper production remains stagnant between 5 and 5.5 million tons, while mining companies face rising costs and aging deposits. The government aims to significantly increase investment in mineral exploration, targeting approximately US$3 billion to build a long-term resource base. Codelco’s strategic goal is to increase production toward 6 million tons globally, with the company contributing at least 1.3 million tons.

Regarding future fiscal policy, Mas stated that the government will evaluate profit capitalization on a year-to-year basis depending on economic needs and fiscal imbalances. This strategy aligns with Codelco Chairman Bernardo Fontaine’s plan to reduce debt and optimize investments. Additionally, Mas addressed the state mining company Enami, noting its significant debt of US$260 million and its declining role in supporting small-scale mining operations.