Chile’s State Copper Miner Codelco Sees Output Fall 8% but Profit Jump on High Prices
CHILE · MINING
Key Facts
—The production. Codelco’s own copper output fell 8.1% year-on-year to 272,000 fine metric tons in the first quarter of 2026.
—The total. Including its stakes in El Abra, Anglo American Sur and Quebrada Blanca, total output reached 300,000 tons, down 7.5%.
—The profit. Despite the production drop, EBITDA rose 59% to $2.143bn and consolidated net profit reached $290m, nearly five times the year-earlier figure.
—The state. Contributions to the Chilean treasury totalled $430m, up 94% on the year, on high copper and molybdenum prices.
—The verdict. Chief executive Rubén Alvarado called it an “operationally demanding” quarter marked by restrictions, lower ore grades and higher costs.
Codelco, the Chilean state-owned company that is the world’s largest copper producer, reported an 8% fall in its own output in the first quarter of 2026, yet sharply higher profits and state contributions thanks to elevated copper prices. The results capture a company wrestling with operational setbacks even as a strong market lifts its bottom line.
Production down, profit up
Codelco said its own production reached 272,000 fine metric tons in the first quarter, an 8.1% fall from the same period of 2025. Counting its attributed share of El Abra (49%), Anglo American Sur (20%) and Quebrada Blanca (10%), total output was 300,000 tons, down 7.5% from 324,000 tons a year earlier.
Yet the financial picture moved in the opposite direction. Earnings before interest, taxes, depreciation and amortisation rose 59% to $2.143bn, while consolidated net profit attributable to the company reached $290m, almost five times the $60m recorded a year earlier. The improvement was driven primarily by higher international prices for copper and the by-product molybdenum.
A bigger cheque for the treasury
Contributions to the Chilean state, including the reserved copper law and the mining royalty, totalled $430m in the quarter, a 94% increase on the same period of 2025. As a state-owned company, Codelco is a significant source of fiscal revenue, so the rise matters well beyond the company’s own accounts.
The gain came even as the direct cash cost rose 10% to 231.8 US cents per pound, pushed up by a stronger dollar and higher costs for materials and mine services.
Live Market IntelligenceChile — Live Market Board
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Chile — Live Market Board
-1.14%
185,147.15
-0.02%
64,866.61
-0.87%
11,315.26
-1.14%
3,049,121
-0.29%
2,544.56
+0.40%
59,978.22
-0.31%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IPSA | 11,315.26 | -1.14% | — | 11,445.90 | 11,210 | 10,984 | 1,513,213,483 |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| SQM-B | 65,305 | -0.84% | +49.03% | 65,860 | 66,949 | 64,978 | 76,539 |
| COPEC | 5,964 | -1.09% | -11.70% | 6,030 | 6,100 | 5,960 | 634,331 |
| BSANTANDER | 78.37 | -2.28% | +35.94% | 80.20 | 81.69 | 78.34 | 36,288,711 |
| FALABELLA | 6,334 | -1.48% | +23.28% | 6,429 | 6,450 | 6,300 | 26,085,814 |
| ENELAM | 87.09 | +0.10% | -10.13% | 87.00 | 87.40 | 86.50 | 13,106,417 |
| CENCOSUD | 1,946 | -2.19% | -35.30% | 1,990 | 2,010 | 1,945 | 966,528 |
| CMPC | 1,020 | -1.96% | -29.10% | 1,040 | 1,050 | 1,015 | 3,526,677 |
| BANCO CHILE | 184.96 | -1.01% | +32.87% | 186.85 | 189.99 | 184.33 | 18,101,240 |
| LATAM AIR | 24.08 | -1.11% | +16.61% | 24.35 | 24.59 | 23.88 | 573,612,753 |
| SOUTHERN COPPER | 193.97 | -0.26% | +104.01% | 194.48 | 199.36 | 192.59 | 367,102 |
Which divisions drove the fall
The output decline was concentrated in several divisions, with El Teniente down 26%, Chuquicamata down 18%, Gabriela Mistral down 14%, Ministro Hales down 10% and Andina down 6%. The company cited operating restrictions linked to earlier accidents, lower ore availability, declining ore grades and scheduled maintenance.
Not all divisions fell. Radomiro Tomic increased production 12% to 71,600 tons on better oxide ore grades, while Salvador jumped 80% to 11,700 tons following the start-up of the Rajo Inca project.
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Structural projects and the road ahead
“These results reflect an operationally demanding quarter,” said chief executive Rubén Alvarado, pointing to production restrictions, lower grades and higher costs. On its structural projects, Codelco said the first phase of the continuity infrastructure at Level 1 of the Chuquicamata underground mine had reached 92% progress.
In the El Teniente project portfolio, the Andes Norte and Diamante works stood at 81% and 55% respectively, having resumed construction as the company weighs continuity options following the investigation into an accident in July 2025. At the Salvador division, the Rajo Inca project reached 95% overall progress and is ramping up toward its design capacity, expected during 2027.
Frequently Asked Questions
How much did Codelco’s production fall?
Own output fell 8.1% to 272,000 fine metric tons; total output including its stakes was 300,000 tons, down 7.5%.
Why did profit rise if production fell?
High international prices for copper and molybdenum lifted earnings; EBITDA rose 59% to $2.143bn and net profit reached $290m.
How much went to the state?
Contributions to the Chilean treasury totalled $430m, up 94% on the year.
Which divisions grew?
Radomiro Tomic rose 12% and Salvador jumped 80% on the Rajo Inca start-up, offsetting part of the falls elsewhere.
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