Codelco Profit Surges Fourfold on Higher Copper Prices
Copper | 2026-08-31 06:40:11
However, the company’s own copper production dropped 11% to 564,000 metric tons, from 634,000 tons in the first half of 2025.
By Paul Ploumis
SEATTLE (Scrap Monster): Chilean state-owned copper producer Codelco recorded a sharp jump in first-half 2026 earnings, driven by a strong rise in copper prices despite lower mine output and increased operating costs.
The miner reported pre-tax profit of $1.97 billion for the January-June period, compared with $429 million a year earlier. Codelco said the stronger financial performance was largely supported by favorable copper prices. The company’s realized copper price surged to 653.2 cents per pound from 461.7 cents, providing a substantial boost to profitability.
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However, the company’s own copper production dropped 11% to 564,000 metric tons, from 634,000 tons in the first half of 2025. The dip in production was mainly attributed to operational constraints at El Teniente, weaker production at Chuquicamata, and declining ore grades at Ministro Hales.
Production challenges have intensified at El Teniente following a fatal accident in late July that claimed six lives. The company has also temporarily halted development work at the mine’s Andes Norte section because of concerns over seismic conditions.
Codelco did not provide an updated 2026 production forecast in its latest results. The company is unlikely to meet its previous target of 1.33-1.36 million tons. Meanwhile, the company’s new CEO, Jorge Gomez, has identified restoring productivity as a key priority.
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What was the main driver of Codelco’s first-half 2026 profit surge?
Frequently Asked Questions
- How much did Codelco’s profit increase in the first half of 2026?
Codelco’s pre-tax profit climbed to $1.97 billion during January-June 2026, compared with $429 million in the same period of 2025. The more than fourfold increase was primarily driven by significantly higher copper prices.
- Why did Codelco’s copper production decline?
Codelco’s copper output fell 11% to 564,000 metric tons from 634,000 tons a year earlier. Operational restrictions at El Teniente, weaker production at Chuquicamata and declining ore grades at Ministro Hales were the main factors behind the reduction.
- How did higher copper prices affect Codelco’s financial performance?
Higher copper prices provided a major boost to earnings. Codelco’s realized copper price rose to 653.2 cents per pound, compared with 461.7 cents a year earlier. This substantial price improvement more than offset the impact of lower production and higher operating costs.
