[REVISION HISTORY]

Chile Codelco debt and privatization debate

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2026-07-29 03:25 UTC → 2026-07-30 01:24 UTC · added ~~removed~~

In early July 2026, Chile’s state‑owned copper miner Codelco reported a production cut and a growing debt burden of roughly US$25 billion, even as global copper demand surged. Later that month, ~~the issue moved into the political arena.~~ Republican Party leader Arturo Squella called for selling a minority stake or non‑essential assets of Codelco to bring in private capital and alleviate the debt. He warned that operating costs had risen 43 % over four years, reaching about US$80 per tonne of output. Codelco’s board president Bernardo Fontaine and President José Antonio Kast rejected any change to the company’s 100 % state ownership, arguing that management and governance reforms should come first. Economy Minister Daniel Mas said the government would not pursue full privatization but might consider asset sales to improve efficiency. Opposition voices—including Deputy Marcela Hernando and former Interior Minister Álvaro Elizalde—argued that Codelco must remain a wholly state‑owned asset. The debate unfolded against the backdrop of a broader economic reform agenda in Chile, highlighting the tension between financing needs and preserving national control over a key mineral resource. On 28 July 2026, Squella reiterated his proposal, emphasizing that a minority‑stake sale would allow “private oxygen” to flow into the company while keeping state control. Board chairman Bernardo Fontaine, President Kast and Finance Minister Jorge Quiroz again rejected any immediate privatization, calling for a special expert commission to draft a long‑term modernization plan instead of asset sales.

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