By Fernando López
The internal Codelco report released yesterday has sparked a wide range of reactions. However, its findings came as little surprise, given that the state-owned miner’s weak financial performance has been the subject of debate for years.
But the company’s challenges do not end there. Bloomberg described Codelco’s situation as “precarious,” warning that the copper producer risks missing out on much of the historic surge in global copper demand.
Bloomberg’s Assessment of Codelco
In an article published today, Bloomberg said Codelco is in a “precarious position.”
Against a backdrop of declining production—the company’s lowest level in 28 years—and a debt burden of US$25 billion, Bloomberg noted growing concerns that the miner “is failing to capitalize on copper prices that are hovering near record highs,” driven by demand from artificial intelligence (AI) technologies and the global energy transition.
As a result, Bloomberg argues that a key question has gained momentum: Is Codelco’s current business model sufficient to capitalize on the new copper boom, or should it make greater room for private-sector capital?.
The financial news platform added that Chilean authorities and mining industry representatives are evaluating a range of options to reform Codelco, including asset sales, reductions in investment, expanded partnerships with private companies through joint ventures, and shared infrastructure initiatives.
“If Chile fails to act, Codelco risks missing out on part of a historic surge in copper demand that has pushed the metal’s price to record highs,” Bloomberg concluded.
Government Highlights Fontaine’s Work
Speaking today, Chile’s Minister of Economy and Mining, Daniel Mas, stressed that improving Codelco’s situation is a priority for the current administration. He emphasized that Chairman Bernardo Fontaine is working “seriously” to reverse the company’s problems, including its high debt levels.
Mas said that Codelco “had been pursuing a strategy of continuing to develop projects financed through additional borrowing. We have been critical of that approach. We have asked the company’s corporate governance, and particularly its chairman, to present alternative options.”
The minister has previously explained that Fontaine’s first month has focused on visiting mining operations, becoming familiar with the company, and preparing an action plan, although no details have yet been released.
Meanwhile, new developments continue to emerge. Earlier this week, for example, the congressional investigative committee examining the company’s overstated 2025 production figures was formally established.
Susana Jiménez, president of Chile’s Confederation of Production and Commerce (CPC), said the proposed changes are justified, adding that “if improvements are needed, including reviewing long-term projects, I believe that is welcome.”
According to Juan Carlos Guajardo, founder and analyst at Plusmining, new approaches should be considered to restore Codelco’s competitiveness.
“It is advisable to explore alternative forms of management and corporate governance for the company, particularly those that provide greater flexibility and allow it to operate more like its private-sector competitors,” Guajardo said.
Source: Bio Bio