Chile’s government will allow state-owned Codelco to retain all of its 2025 profit, leaving about $2.42 billion in the copper giant as it looks to revive production and ease a record debt burden. The move provides a critical financial lifeline for the world’s largest copper producer, which has been grappling with declining output and mounting liabilities.

Codelco has faced years of falling copper production due to aging mines and project delays. The retained profit will help fund necessary investments in new operations and infrastructure, while also reducing pressure from debts that have reached historic highs. Chile’s economy depends heavily on copper revenues, making Codelco’s turnaround a priority for the government.

The decision underscores the government’s commitment to supporting Codelco through a challenging period. With global demand for copper expected to grow, the $2.42 billion infusion gives the company breathing room to stabilize output and improve financial health. The move is seen as a crucial step in preserving Chile’s leadership in the copper industry.