Codelco Expects to Churn Out Slightly More Copper This Year

(Bloomberg) — Codelco expects to produce slightly more copper in 2026 than last year as the Chilean state-owned miner looks to put a series of operational and project disruptions in the rearview mirror.

Expanding mines operated by Codelco in Chile are budgeted to produce 1.344 million metric tons this year, compared to 1.333 million tons last year, Chief Executive Ruben Alvarado told reporters in Santiago on Friday. The company’s official guidance range is 1.331 million to 1.357 million tonnes.

Chief Executive Máximo Pacheco is struggling to revive production after output fell to a 25-year low due to declining ore grades, delays and cost overruns on several projects designed to exploit richer deposit areas. The task is made even more difficult by ongoing restrictions on part of its largest mine, which collapsed in July, killing six workers.

Pacheco, the 73-year-old former energy minister whose term as president ends in May, wants to return production to pre-pandemic levels of about 1.7 million tonnes and potentially reclaim the title of the world’s largest copper producer from BHP Group.

This rebound will be welcomed by a copper market where supply is expected to struggle to keep up with demand due to the AI-powered data center boom and the shift to electric vehicles.

Codelco met its 2025 target thanks to a strong rally in December, when its production increased by more than 40% compared to November. Production fell sharply in January.

But while production from its own mines increased slightly last year, overall production, including the share of mines operated by other companies, fell slightly to 1.44 million tonnes.

Codelco also offered early estimates of the cost impact of disruptions from conflict in the Middle East, with Chief Financial Officer Alejandro Sanhueza pegging them at around 5%.

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