Codelco Profit Surges Fourfold on Higher Copper Prices

Copper | 2026-08-31 10:16:25

However, the company’s own copper production dropped 11% to 564,000 metric tons, from 634,000 tons in the first half of 2025.

Codelco Profit Surges Fourfold on Higher Copper Prices

Summary

Codelco earnings surge on higher copper prices: Chilean copper giant Codelco reported first-half pre-tax profit of $1.97 billion, up sharply from $429 million a year earlier. Its realized copper price increased to 653.2 cents per pound from 461.7 cents, significantly strengthening revenue and profitability.
Copper production falls amid mine disruptions: Codelco’s own copper output declined 11% year-on-year to 564,000 metric tons. Operational difficulties at El Teniente, lower production at Chuquicamata and weaker ore grades at Ministro Hales contributed to the decline, while costs also moved higher.
2026 production target faces pressure: Codelco has not released a revised production forecast but is unlikely to achieve its earlier 1.33-1.36 million-ton target. New CEO Jorge Gomez has made restoring productivity a priority as the company addresses operational and investment challenges.

Codelco Profit Surges Fourfold as Higher Copper Prices Offset Output Decline

Q: 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.

Q: 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.

Codelco reported first-half 2026 pre-tax profit of $1.97 billion as its realized copper price climbed to 653.2 cents per pound, offsetting an 11% decline in the Chilean miner's own copper production and higher operating costs.

By Paul Ploumis
Published August 31, 2026

Key Points

Codelco's first-half pre-tax profit rose to $1.97 billion from $429 million a year earlier.
The company's realized copper price increased to 653.2 cents per pound from 461.7 cents.
Codelco's own copper production fell 11% to 564,000 metric tons from 634,000 tons.
Operational constraints at El Teniente, weaker Chuquicamata output and declining ore grades at Ministro Hales weighed on production.
Codelco has not issued an updated 2026 production forecast and is unlikely to meet its previous 1.33-1.36 million-ton target.

MONTREAL (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.

Higher Copper Prices Offset Lower Mine Output

Codelco's own copper production dropped 11% to 564,000 metric tons from 634,000 tons in the first half of 2025.

The decline was mainly attributed to operational constraints at El Teniente, weaker production at Chuquicamata and declining ore grades at Ministro Hales.

El Teniente Challenges Add Pressure

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.

2026 Production Target Faces Pressure

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?

Higher copper production

Lower operating costs

Higher copper prices

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.