Codelco Secures Financing from HSBC, Santander to Decarbonize

Written by Amir Richani for IIR News (Sugar Land, Texas)

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Summary

Codelco continues its efforts to decarbonize its energy matrix by 2030. This is the second credit line the company has received for decarbonizing its operations since 2024.

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Decarbonization Gets a Boost

Codelco (Santiago, Chile), Chile's state-owned mining company, received US$600 million in financing from the Hong Kong and Shanghai Banking Corporation Limited (HSBC) (Hong Kong) and Banco Santander (Madrid, Spain) to decarbonize its electricity matrix. The agreement is backed by the World Bank's Multilateral Investment Guarantee Agency.

The mining company aims to source 100% of its electricity from renewable energy by 2030. The plan began in 2018 with contract renegotiations with companies such as Engie (Paris, France), Colbun (Santiago) and AES Corporation (Arlington, Virginia), and a tender for 1.8 terawatt-hours (TWh) per year, which will allow Codelco to source 85% of its power from renewables in 2026.

HSBC and Santander's loan is the second of its kind for the Chilean miner, following a US$532 million loan from Credit Agricole CIB (Paris) in 2024.

"The completion of this second transaction reflects Codelco's commitment to innovation, environmental responsibility and long-term value creation for the country, as part of our purpose to be the pillar of sustainable development in Chile and the world," said Rubén Alvarado, the chief executive officer of Codelco, in a press release.

Codelco's operations account for roughly 9% of Chile's power demand.

Electricity supply

By the end of 2025, Chile had an installed electric capacity of 39,104 megawatts (MW) in its National Electric System (SEN). Solar power capacity accounted for 31% of the total, hydropower another 19%, and wind 16%, representing the three largest capacities.

Meanwhile, by December 2025, 57 electricity projects were undergoing tests to begin operations, totalling 1,821.9 MW. Of those, 42 projects pertain to solar power capacity, five to battery energy storage systems, and three to wind plants.

Industrial Info is tracking 653 renewable energy-related projects across Chile, totalling US$73.23 billion in investments.

Copper production

Between January and October 2025, Codelco recorded copper output of 1.127 million tons, about 0.7% more than during the same period in 2024, according to the company.

Codelco could close the year with volumes below the 1.428 million tons registered in 2024, due to operational setbacks at its El Teniente mine, as well as lower production from El Abra (49%), Quebrada Blanca (10%), and Anglo American Sur (20%), where it holds stakes.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can learn more from detailed profiles of the El Teniente, El Abra, Quebrada Blanca and Anglo American Sur mines.

For years, the Chilean company has faced production declines due to delays in its structural projects and operational setbacks. However, in 2024, Codelco was able to arrest the production declines.

The production volumes throughout 2025 have been maintained despite the July accident at the El Teniente mine that led to the death of six miners and forced the shutdown of the mine for several days. Between January and October 2025, the El Teniente mine produced 257,000 tons of copper, 8.7% less than in 2024.

Key Takeaways

• Codelco receives US$600 million in financing to decarbonize its power matrix.
• The company expects 85% of its electricity to come from renewable power in 2026.
• Renewable sources dominate Chile's installed capacity.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).