Chile to Inject All of Codelco's Profits Back into Struggling Copper Miner

Chile's government has decided to reinvest all of state-owned copper miner Codelco's 2025 profits into the company, a significant boost for a producer struggling with high debt and aging mines.

The move marks the first time in Codelco's history that the Chilean state will channel all profits back to the company. This decision comes as Codelco seeks to strengthen its finances while advancing multibillion-dollar structural projects needed to reverse years of production declines and extend the life of some of Chile's largest copper deposits.

Codelco, one of the world's largest copper producers, reported a net profit of $2.4 billion in 2025, thanks to stronger copper prices and income from its lithium partnership with SQM. However, the company ended the year with net debt of $25.1 billion, which has raised concerns about its financial sustainability.

Codelco Chairman Bernardo Fontaine said that this timely investment will provide critical support for the company's recovery plan. Mining Minister Daniel Mas emphasized the importance of this decision, stating that it will enable Codelco to implement a deep recovery plan and address its pressing financial needs.