Ciara Nugent in Buenos Aires Published August 10 2026 Chile’s government will allow state‑owned mining company Codelco to reinvest all of its 2025 profits in an unprecedented move to ease a financial crisis at one of the world’s largest copper producers.

Mining and economy minister Daniel Mas said on Monday that Codelco, whose profits are normally largely redirected to Chile’s treasury, would retain “100 per cent” of the $2.42bn it generated last year for the first time since its founding in 1976.

The decision comes as Codelco grapples with a slump in production, a 10mn tonne shortfall forecast by 2040, and a debt pile worth more than $20bn. It is balancing major construction projects to extend ageing mines while output fell to 1,307,570 tonnes, a 19 per cent decline from 2021.

Juan Carlos Guajardo of consultancy Plusmining said the reinvestment will give Codelco greater financial breathing space, though it may not immediately cut debt. Bernardo Fontaine, newly appointed chair, pledged to prioritize profitability over output as the company implements a recovery plan.