Codelco Beats Expectations Despite Mine Disruptions

Chile's state-owned copper miner Codelco reported strong first-half earnings despite lower production and higher costs. The company's pre-tax profit of $1.97 billion for the six months ending June 2026 is up more than fourfold from the same period last year.

The increase in profits was largely driven by a favorable copper price environment, with Codelco's realized copper price jumping to 653.2 cents per pound from 461.7 cents a year earlier. However, production fell 11% to 564,000 metric tons due to operational restrictions at El Teniente and lower output at Chuquicamata.

Codelco's new CEO Jorge Gomez has made restoring productivity a priority after setbacks at key mines. The company paused development of the Andes Norte section of El Teniente earlier this month due to higher-than-expected seismic risks, but still expects to start production there in 2029.