Chile Allows Codelco to Retain $2.42 Billion in Profits

The Government of Chile has authorized the state-owned copper producer Codelco to retain 100% of its 2025 profits, estimated at $2.42 billion. This decision marks the first time in the company's 50-year history that the state has permitted the full retention of annual earnings, a move intended to help the company manage a record debt burden of $25 billion and restore production levels that are currently near a 28-year low.

Economy and Mining Minister Daniel Masur announced the measure, noting that the funds will be used for strategic investments and liquidity. In exchange for this unprecedented support, the government requires Codelco to implement greater financial discipline and rigorous spending prioritization. The company is still required to pay 10% of its total sales to the state.

Chairman Bernardo Fontaine Talavera, who was appointed in May by President José Antonio Kast, is currently conducting a strategic review of the company. This review focuses on improving transparency and prioritizing profitability over production volume to stabilize the company's financial health.