Chilean miner Codelco, the world’s largest copper producer, reported a slight increase in production during the first quarter, although the gain was not enough to counteract the impact of currency fluctuations, resulting in a sharp drop in profits. The state-owned company posted a 53% decline in pre-tax profit compared to the same period last year, falling to $213 million for the first three months of 2025. Despite the profit decrease, Codelco’s copper production rose by 0.3%, reaching 296,000 metric tons. When including its stakes in Freeport’s El Abra, Anglo American Sur, and Teck’s Quebrada Blanca operations, total production increased by 1.6% to 324,000 metric tons.
Codelco is targeting annual copper production between 1.37 million and 1.4 million tons for 2025 as it continues efforts to boost output after hitting a 25-year low in 2023. However, production in the first quarter faced setbacks due to heavy rains and a nationwide blackout in February, which reduced refined copper output by approximately 10,000 tons. Core earnings, measured by EBITDA, declined by nearly 12% to $1.35 billion, a drop the company attributed largely to exchange-rate pressures. The Chilean peso appreciated by 2.76% between March 2024 and March 2025, which negatively affected Codelco’s financial results.
Codelco also faced rising operational costs driven by planned maintenance at its mines and plants, as well as increased expenses for equipment leasing. Some of these costs were partially offset by lower prices for inputs like energy and fuel. Looking ahead, the miner highlighted key developments expected to support production growth later in the year. At its El Teniente mine, the Andesita section is anticipated to begin production in the second quarter, followed by the launch of the Andes Norte section in the third quarter. Additionally, the ramp-up of the concentrator at the Rajo Inca project, located in Codelco’s Salvador Division, is expected to be completed during the third quarter.
Despite the challenges in the first quarter, Codelco remains focused on stabilizing and enhancing its production levels while managing costs carefully. The miner’s ongoing expansion projects and operational improvements aim to strengthen its position in the global copper market as demand for the metal continues to rise, driven by the energy transition and technological advancements.
READ MORE: