Codelco chair puts profit ahead of copper output

Chile’s state-owned copper giant Codelco will prioritize profitability over production growth as it confronts heavy debt, declining output and governance challenges under new chairman Bernardo Fontaine.

Fontaine, who became chairman in late May, told newspaper El Mercurio the miner is reassessing its strategy through an external audit to identify operational improvements and new opportunities. 

He said Jorge Gomez will assume the role of executive president on Monday, a position comparable to chief executive officer. Codelco, the world’s largest copper producer, carries about $25 billion in debt after years of declining production, with output falling to its lowest level in 28 years.

“Our results have been weak, and production has fallen below estimates for the past seven years,” Fontaine said. He added that Codelco’s extensive operating infrastructure provides a strong foundation for improving performance.

The leadership change comes as Codelco works to restore investor confidence following a series of setbacks, including a fatal accident and investigations into inflated production figures. 

The company’s turnaround is being closely watched as rising demand for copper, driven by artificial intelligence, electrification and the energy transition, underscores the strategic importance of increasing reliable supply.

The scrutiny intensified after Diario Financiero published an interview Saturday with former Codelco executive Cesar Marquez, who was dismissed earlier this year following the investigation into reported production figures. 

Marquez defended the reported output as legitimate and said senior management understood how the figures had been presented.