Codelco says private partnerships are key to stopping Chile copper output decline

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Codelco on private partnerships

Highlights

Codelco chairman Bernardo Fontaine states the miner requires private-sector partners to develop 1 million hectares of mining concessions and halt copper output decline.
Fontaine cites restrictive legislation and lengthy partnership processes as significant barriers despite existing ventures with Rio Tinto and BHP.
Codelco aims for average annual output of 1.3 million tonnes after record-low production in 2022–2023, relying on operational discipline and external investment.

Partnership push to support new mining projects

As reported by Reuters, Codelco board chairman Bernardo Fontaine says the miner needs private-sector partners to develop new projects if it is to halt the decline in copper production. Speaking to Radio Duna on Monday, Fontaine says the company holds 1 million hectares of mining concessions that remain undeveloped, while lacking the management capacity and capital needed to advance them.

Fontaine says such partnerships are the only viable route for Codelco to expand, or even preserve, future production levels. He adds that legislation governing state-owned companies has made it harder to form these ventures, while a long and complex process discourages many potential partners.

Codelco has nonetheless already entered partnerships with global mining groups Rio Tinto and BHP, showing that the company is still able to attract major industry players despite those constraints.

Operational recovery and sector implications

The comments come as Codelco continues trying to recover from record-low output between 2022 and 2023. Delays in key projects, declining ore grades and a recent scandal involving inflated production figures have weighed on the company's efforts to restore production.

Fontaine says the miner's new management team has removed the excessive optimism that contributed to previously reported overstated production numbers. He says Codelco will make every effort to achieve average annual output of about 1.3 million tonnes, a target that underscores the strategic importance of operational discipline and external investment support for Chile's copper sector.

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