Codelco, Chile’s state-owned copper producer, reported a first-half pre-tax profit of $1.97 billion, more than four times the $429 million recorded in the same period last year, as a sharp rally in copper prices outweighed an 11% decline in output and a 7% rise in direct cash costs.
The company’s first-half copper production fell to 564,000 metric tons from 634,000 tons a year earlier, driven by operational restrictions at the El Teniente mine, reduced output at Chuquicamata, and weaker ore grades at the Ministro Hales site. Despite these setbacks, Codelco’s realized copper price increased to 653.2 cents per pound from 461.7 cents per pound in the prior-year period.
New Chief Executive Jorge Gomez emphasized restoring productivity as the company’s top priority, citing ongoing disruptions at El Teniente and a broader review of investment priorities amid a elevated debt burden. Chairman Bernardo Fontaine had previously indicated that achieving Codelco’s annual output target of 1.33 million to 1.36 million metric tons for 2026 would be challenging given current production trends.
Codelco’s direct cash cost rose to 231.6 cents per pound from 216.4 cents per pound a year ago, reflecting higher operational expenses during the period.
