Chile’s state-owned copper giant Codelco has benefited from stronger copper prices, helping lift profitability even as operational disruptions and challenges at key mines continue to weigh on production.
Codelco reported first-half 2026 pre-tax profit of $1.97 billion, more than four times the $429 million recorded in the same period a year earlier. The improvement came as the company’s realized copper price climbed sharply, helping offset lower production and rising operating costs.
The company’s own copper production fell 11% to 564,000 metric tons, compared with 634,000 tons in the first half of 2025. Operational restrictions at El Teniente, maintenance-related disruptions at Chuquicamata, and lower ore grades at Ministro Hales were among the main factors behind the decline.
The production setback also increased costs. Codelco’s direct cash cost rose about 7% to 231.6 cents per pound, while its realized copper price increased to 653.2 cents per pound, up from 461.7 cents a year earlier. The sharp rise in copper prices therefore provided a significant cushion against the operational challenges.
The results highlight a mixed picture for the world’s largest copper producer. While the copper rally has strengthened its financial position, restoring production remains a major priority for the company. Codelco is also dealing with continuing disruption at El Teniente, where a fatal accident and concerns over seismic risks have complicated operations and development plans.
New Chief Executive Jorge Gomez now faces the challenge of reversing years of production weakness while balancing investment priorities, costs and the company’s debt burden. Codelco had previously targeted production of between 1.33 million and 1.36 million tonnes for 2026, although achieving that target has become increasingly difficult given the current production trend.
The strong earnings nevertheless underline the importance of copper prices to Codelco and Chile’s wider mining economy. With global demand for copper supported by electrification, power-grid expansion, renewable energy and data-center infrastructure, the company’s ability to restore output could become increasingly important in the global copper market.