Codelco in 2026: Rebuilding the Base While Betting on Partners

Codelco is still the world’s largest copper producer and the most important company in the Chilean economy. It is also under real pressure. Its main mines are ageing, ore grades are falling, and the projects meant to replace lost production have taken longer and cost more than planned. With copper demand rising from grids, renewables, electric vehicles and data centers, and new supply taking around 17 years to bring online, Codelco’s performance matters well beyond Chile.

The first half of 2026 tells two stories. Financially, it was strong. The average copper price Codelco received rose more than 40%, operating earnings rose 68% to US$4.6 billion, and profit reached US$669 million. Operationally, it was weaker. Production fell 10% to 619,000 tonnes and costs rose, driven by the aftermath of the El Teniente accident, maintenance at Chuquicamata and lower grades at Ministro Hales. Salvador, Andina and Radomiro Tomic did improve, a sign that some recovery efforts are working.

The key point is that most of the financial improvement came from price, not from better operations. If the copper cycle turns, that gap will show.

Expectations have been reset. Leadership now expects output of around 1.3 million tonnes a year, well below the earlier 1.7 million tonne goal. The company is also dealing with an internal audit on production reporting, a new chief executive, Jorge Gómez, and a recovery plan that may slip to the end of 2026. Workforce reductions of 5% to 20% are reportedly under discussion, and contractors, who make up about 80% of the workforce, could bear most of any cuts.

The government has stepped in. In August, it allowed Codelco to keep US$2.4 billion of its 2025 profits, the first time in more than 50 years it has retained a full year’s surplus. The condition is clear: financial discipline and strict prioritization of investment.

For suppliers and contractors, that means a more selective Codelco, with spending focused on what truly restores production.

Chuquicamata Underground

• Converting one of the world’s best-known open pits into an underground mine, extending its life by 41 years with production of 230,000 tonnes of copper a year at full capacity. The scale is significant, with 20 kilometers of conveyor belts across three levels and 750 kilometers of total development.
• Update: The first stage of Level 1 is 94% complete, and studies are underway on a deeper mine level.

El Teniente

• Three new underground levels (Andes Norte, Diamante and Andesita) designed to extend the mine’s life by 50 years at 260,000 tonnes a year. More than US$4 billion has already been invested.
• Update: This is the most complex story in the portfolio. Diamante is 59% complete and continuing. Andes Norte, the project with the largest potential volume, has been suspended while geomechanical and seismic studies are carried out, leading Codelco to relocate 1,782 workers. Andesita remains halted, limited to maintenance work while it is under review.

Rajo Inca (Salvador Division)

• A new open pit that extends the Salvador Division’s life by 38 years.
• Update: The project is in its ramp-up stage with 97% overall progress. The concentrator plant was completed in August 2025 and is expected to reach full capacity in 2026, and Salvador’s 18% production increase this year reflects that progress.

Andina New Transfer System

• A new ore transfer system that extends Andina’s life by 30 years, with annual production of 200,000 tonnes at full capacity.
• Update: The project has completed its full scope.

Radomiro Tomic

• Two projects to extend the division’s life: a new concentrator plant processing 100,000 tonnes a day, and an extension of the leaching operation using chloride technology at 154,000 tonnes a day.
• Update: Feasibility studies for both were approved in 2025. The leaching project, worth about US$1.3 billion, was submitted for environmental review in January 2026 and would extend production until 2058. It also prepares the ground for Radomiro Tomic Sulfides II, a project of nearly US$5 billion now in engineering and feasibility.

Ministro Hales

• An expansion project to increase production at the division. Update: The project received environmental approval earlier this year, which matters given the division’s 21% production drop from lower ore grades.

Water and Tailings

• The infrastructure that keeps the divisions running, with about US$1.5 billion invested so far, including expansions at four tailings facilities and the US$1 billion Northern District Desalination Plant near Tocopilla.
• Update: The desalination plant is in commissioning and will supply Radomiro Tomic, Chuquicamata and Ministro Hales. This is not a side issue: lower grades mean more ore must be processed, which increases water and energy use.
• Overall, Codelco is advancing 22 projects at existing operations worth more than US$15.5 billion. However, the company is reassessing its long-term business plan with a strong focus on financial discipline across the investment portfolio, which means some of these timelines may still change.

Partnerships and strategy with private companies

The most important strategic shift is how Codelco plans to grow. The company now describes this as the third stage of its history, a hybrid model that combines its core operations with public-private partnerships. In practice, that means sharing risk, capital and expertise with private miners rather than carrying every project alone.

Andina and Los Bronces (Anglo American)

• A joint mine plan between Codelco’s Andina Division and Anglo American’s neighboring Los Bronces operation, which share part of the same deposit. It is the largest deal by volume and is expected to add around 2.7 million tonnes of copper over 21 years.
• Update: Competition approvals have been obtained in China and Brazil and final agreements were signed in 2025. Closing is expected in the third quarter of 2026, with permit applications due by the end of the year.

Nuevo Cobre and San Antonio (Rio Tinto)

• An exploration partnership at Nuevo Cobre, next to Codelco’s own San Antonio project near the Salvador Division, with the goal of building a wider mining district.
• Update: The alliance was expanded in May 2025 to include San Antonio, and a memorandum of understanding followed in February 2026. Exploration continues to define the district’s potential.

Anillo (BHP)

• An early-stage exploration project in the Antofagasta region, fully owned by Codelco, which BHP would explore under an earn-in agreement, using its nearby infrastructure and experience.
• Update: The agreement is still subject to legal requirements under Chilean law, including approval from the Comptroller General.

Tovaku (Pucobre)

• A copper project developed through Sociedad Minera Puntilla, with Pucobre holding 60% and Codelco 40%. Planned investment is US$870 million for production of 46,000 tonnes of copper cathodes a year over a 21-year mine life.
• Update: Pucobre has asked to start US$20 million in early works. Tovaku is a good example of the model, adding production outside Codelco’s traditional divisions without Codelco carrying the full cost.

El Abra (Freeport-McMoRan)

• Codelco’s oldest partnership, formed in 1994, now moving toward a major expansion of about US$7.5 billion that would extend the mine’s life by roughly 40 years.
• Update: El Abra submitted its environmental assessment in March 2026, starting the permitting process.

NovaAndino Litio (SQM)

• Codelco’s lithium joint venture with SQM at the Atacama salt flat. SQM controls the joint venture through 2030, and from 2031 to 2060 Codelco takes control at board level.
• Update: The board and governance structure are now in place, with Codelco’s board chairman Bernardo Fontaine also chairing the joint venture.

Maricunga (Rio Tinto)

• A planned lithium joint venture at the Maricunga salt flat, with Codelco holding 50.01% and Rio Tinto 49.99%. Rio Tinto has committed US$900 million, including US$350 million at closing for further studies toward a final investment decision.
• Update: The joint venture becomes effective once regulatory approvals are completed and the shareholders’ agreement is signed. It is worth confirming whether closing has taken place.

Codelco’s own lithium projects

• Alongside its partnerships, Codelco is building out the lithium business on its own, with two projects worth US$97 million submitted for environmental review.
• Update: The projects cover power infrastructure for the Atacama operation and a seven-year exploration program at the Pedernales salt flat.

Conclusion

Codelco is doing two things at once. It is trying to stabilize a core business that has lost production, credibility and momentum, while opening its future growth to private partners in a way it has not done before. High copper prices and the government’s decision to let it keep its profits have bought time, but they do not fix the underlying operational problems.

The next few months will be telling. The recovery plan, the government and Cochilco reviews, the closing of the Anglo American deal, the final decisions at El Teniente and the progress of the lithium ventures will show whether 2026 was a turning point or another difficult year.

For suppliers and technology companies, the message is practical. Codelco itself is likely to focus harder on cost, efficiency and contractor numbers, while its partners, including Anglo American, Rio Tinto, BHP, Pucobre and SQM, will drive a growing share of new activity with their own procurement practices and timelines. Energy is another clear signal. According to Cochilco, Codelco’s goal of running on 100% renewable electricity by 2030 is the main reason the Chilean copper sector is expected to reach almost fully renewable supply that year. Combined with rising energy costs and heavier water and processing needs from lower grades, that creates demand for grid, storage, water and efficiency solutions around its operations.

Companies that understand both Codelco and its partners, as well as the Chilean legal and labor framework that governs them, will be best placed to take part in what comes next. If your company is looking at opportunities with Codelco or its partners in Chile, we would be glad to set up a conversation.

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