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Chile Permits Codelco to Retain Entire $2.42bn Profit
August 11, 2026
– Amruth S
Codelco, Chilean state-owned company, has been allowed to retain its entire profit from FY2025 totaling $2.42bn, for the first time in its history. As per the Economy and Mining Minister of Chile, this unprecedented move aims to provide essential liquidity, fund strategic investments, and limit the need for further borrowing without disrupting the mandatory 10% sales tax paid to the state. This comes amid Codelco’s record $25bn debt load and output hovering near 28-year lows. Besides, the company has faced operational delays and severe disruptions, including a fatal mine collapse last year. To retain the $2.4bn, the government mandates strict financial discipline and rigorous spending prioritization as Codelco executes its operational recovery plan. Codelco’s Chairman Bernardo Fontaine has also committed to prioritizing profitability over volume, controlling debt, and evaluating potential asset sales or joint ventures.
Codelco’s dollar bonds were trading marginally lower with its 5.125% 2033s at 97.71, yielding 5.55%.
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