Key facts
- Codelco's pre-tax profit for the first half of 2026 was $1.97 billion, a significant increase from $429 million in the same period last year.
- The company's copper production fell 11% to 564,000 metric tons due to operational issues at key mines.
- Direct cash costs increased by 7% to 231.6 cents per pound.
- The realized copper price surged to 653.2 cents per pound, offsetting higher costs and lower output.
- Achieving the previously set annual production target of 1.33 million to 1.36 million tons is now considered difficult.
Chilean state miner Codelco reported a significant surge in first-half pre-tax profit, reaching $1.97 billion, a more than fourfold increase compared to the $429 million posted in the same period of the previous year. This improved financial performance was largely attributed to a strong rally in copper prices, which offset a decline in production and rising operational costs.
Despite the profit boost, Codelco's copper production fell by 11% to 564,000 metric tons from 634,000 tons a year earlier. The company cited operational restrictions at its El Teniente mine, lower output at Chuquicamata, and weaker ore grades at Ministro Hales as primary reasons for the production shortfall.
The reduced output also contributed to an increase in direct cash costs, which rose by 7% to 231.6 cents per pound. However, this was more than compensated by a substantial jump in the realized copper price, which climbed to 653.2 cents per pound from 461.7 cents a year prior.
New Chief Executive Jorge Gomez has prioritized restoring productivity, addressing years of declining output and managing the fallout from operational disruptions. Chairman Bernardo Fontaine noted earlier in the month that the company's current production trend makes its previously stated annual output target of 1.33 million to 1.36 million tons difficult to achieve.