Chile’s government-owned copper producer Codelco, one of the largest of its kind in the world, is weighing potential asset sales and new partnerships as it undertakes a broad reassessment of how it invests, Chairman Bernardo Fontaine announced Wednesday in Valparaiso.
The question of whether Codelco should sell off assets is not a new one — it has been debated for years, with different leadership teams arriving at different conclusions over time.
The review could signal a meaningful change in direction under Fontaine’s leadership. Codelco is required to turn its profits over to the Chilean government, a policy the company has long maintained limits its ability to invest and has added to its debt load.
The company is currently facing scrutiny from the administration of President Jose Antonio Kast, who appointed Fontaine as chairman, after an internal audit revealed problems with how production figures were reported last year. Codelco is also working to bounce back from a difficult stretch in 2022 and 2023, when its copper output dropped to its lowest point in roughly twenty years.
“We have been making progress on a comprehensive review of the company’s situation, which is ongoing and will take about three to four months to complete the full diagnosis and the improvement plan,” Fontaine told a lower-house congressional committee.
As part of that review, Fontaine said Codelco will evaluate whether to move forward with or delay certain investments. The company will also look at its full portfolio of holdings to determine whether it makes sense to hold onto all of its assets or pursue sales and partnerships instead.
Among the operations Codelco runs are some of Chile’s most significant copper mines, including Chuquicamata and El Teniente. The company also holds partial stakes in other mining operations, including a 49% interest in El Abra alongside Freeport-McMoRan and a 10% share in Quebrada Blanca with Teck.
