Copper Output From Chile's Codelco Drops 8.1% in First Quarter, Earnings Grow

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

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Summary

High copper prices pushed Codelco's earnings higher in the first quarter, despite an 8.1% drop in production. Copper prices reached record highs amid supply disruptions and expectations of stronger demand. The company continued developing its structural projects, including ongoing work at Andes Norte and Diamante, following a fatal accident at El Teniente in July 2025.

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Earnings Soar Amid Higher Copper Prices

Codelco, the Chilean state miner, recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of US$2.14 billion in the first three months of the year, a US$795 million increase, or 59%, compared to the same period in 2025. The increase mainly resulted from higher copper and byproduct prices.

According to Industrial Info Resources data, there are 56 Codelco-owned projects in Chile, amounting to investments of US$20.99 billion, including those of NovaAndino, its new lithium joint venture with SQM. Of these, Industrial Info Resources forecasts 53 projects with investments totaling US$16.51 billion could be completed by 2030.

During the quarter, copper reached record high prices, driven by the strong demand, geopolitical tensions and operational disruptions that have affected supply.

Codelco's production reached 272,000 tonnes in the first quarter, an 8.1% drop compared to 2025. The biggest drop came from El Teniente mine, where output fell by 26%. The mine continues to face operational limitations due to a July 2025 accident that led to the deaths of six miners.

Additionally, the Ministro Hales, Chuquicamata, Gabriela Mistral, and Andina mines saw drops in output by 10%, 18%, 14% and 6%, respectively.

The Radomiro Tomic mine helped to offset some of these losses by increasing its output to 71,600 tonnes of copper in the first quarter, a 12% year-over-year jump. Similarly, the Salvador Division boosted production by 80%, following the startup of the Rajo Inca project.

Including production shares from El Abra (49%), Anglo American Sur (20%), and Quebrada Blanca (10%), Codelco's output totaled 300,000 tonnes in the first quarter, a 7.5% drop from last year.

Codelco's direct cash cost rose 10% to 231.8 cents per pound, reflecting currency appreciation, lower output and higher operating and maintenance expenses.

Structural Projects

During the quarter, Codelco continued to make progress with its structural projects aimed at sustaining and increasing production. The first phase of the Level 1 continuity infrastructure underground Chuquicamata project reached 92% completion during the quarter.

Meanwhile, the company reactivated construction at the Andes Norte and Diamante projects of El Teniente mine, both impacted by last year's accident. Progress reached 81% and 55%, respectively.

Meanwhile, the Rajo Inca project reached 95% completion and continues its ramp-up phase, which is expected to reach full design capacity in 2027.

Audit of Production Numbers

Codelco was recently involved in a new scandal over the overestimation of more than 25,000 tonnes of production in December. As a result, the board requested an external audit to look into the 2024 and 2025 production figures and took action against the employees involved.

Key Takeaways

• Codelco recorded earnings of US$2.14 billion in the first quarter, a 59% year-over-year increase.
• Codelco's copper output dropped by 8.1% to 272,000 tonnes.
• The company reactivated work in the Andes Norte and Diamante sections of El Teniente.

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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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).