Chilean miner Codelco's profit surges as strong copper prices offset output drop

Fri, 29th May 2026 19:30

SANTIAGO, May 29 (Reuters) - Strong global copper prices helped Chile's Codelco nearly quadruple its pre-tax profit in the first quarter of 2026, even as output declined at most of the state-run mining ‌company's operations. Codelco, one of the world's largest copper producers, on Friday reported a pre-tax profit of $825 million compared with $213 million in ⁠the same quarter last year. The company's own copper production ⁠totaled 272,000 metric tons in the January-March period, down 8% from the year-earlier period. The company benefited from higher global prices for copper and by-products like molybdenum, CEO Ruben Alvarado said. Output, however, was weak at its major El Teniente and Chuquicamata mines, as well as at the ‌smaller Ministro Hales, Gabriela Mistral and Andina operations.

Operations at El Teniente, where output fell 26%, remain limited after a collapse last year that killed six workers. Chuquicamata, where production was down 18% in the most recent quarter, experienced lower ore availability.

"These results reflect an operationally demanding quarter, in which the company had to face production constraints, lower ore grades and higher costs," Alvarado said in a statement.

Production, however, increased at Codelco's Radomiro ‌Tomic mine due to better grades in oxidized ores and higher sulphide shipments. Output also grew in the company's Salvador division due to the ramp-up of the ‌Rajo Inca project.

Codelco did not announce any adjustments to its 2026 output forecast, which stands at 1.33 million to 1.36 million tons.

FALLOUT FROM 2025 PRODUCTION IRREGULARITIES Codelco also continues to deal with the fallout from production irregularities last year that were discovered by an internal audit. The matter led to the dismissal of one executive, other internal disciplinary ‌actions, and a review by Chilean prosecutors.

Reuters reported in March that industry insiders raised concerns about discrepancies in the production figures Codelco reported at the end of last year and whether inventories had been used to help support ⁠performance targets.

The ⁠controversy has raised political pressure on Codelco as Chile's new government reshapes ‌the company's leadership.

Earlier this month, President Jose Antonio Kast appointed Bernardo Fontaine, an economist and business executive, to replace Maximo Pacheco as head of Codelco, while ordering a broader investigation and external audit of the recent production problems.

Codelco is trying to ‌rebound from its poor performance in 2022 and 2023, when copper production fell to two-decade lows. It hopes to produce 1.7 million metric tons per year by 2030. (Reporting by Fabian Cambrero, Iñigo Alexander and Daina Beth Solomon; Writing by Kylie Madry; Editing by Natalia Siniawski and Paul Simao)