Codelco eyes $2 billion gain from unifying copper mines in Chile

Bloomberg News | May 20, 2026 | 2:50 pm Markets Top Companies Latin America Copper

Copper price tops $12,000 for first time on tariffs, supply woes

Ministro Hales copper mine. (Image courtesy of Codelco | Flickr.)

Codelco is seeking a combined $2 billion in cost savings and additional revenue by integrating the operations of three copper mines as the state-owned Chilean company tries to offset the impact of stagnating output and rising debt.

The plan to integrate the Chuquicamata, Radomiro Tomic and Ministro Hales mines in the north of the country was recently presented by management to Codelco’s board of directors, according to people familiar with the situation, who asked not to be identified discussing confidential information.

The plan envisages gains beginning to kick in as soon as 2027 as a result of unifying operational planning for the mines and sharing processing plants, possibly under a single management structure, the people said. Codelco didn’t immediately respond to requests for comment.

The proposed mine integration is part of a company-wide, four-year production plan that Codelco intends to present to the government in the coming months.

Like other copper producers, Codelco is facing inflationary pressures that have eroded the benefits of record prices for the metal. War in the Middle East has driven up the cost of energy and sulfuric acid, a key input for copper processing. Declining ore grades are also forcing producers to process a greater volume of rock to maintain output.

The need to improve efficiency is especially acute for Codelco given its heavy debt load and spending commitments. The company is already busy integrating a central Chile operation with an adjacent Anglo American Plc mine, and it increasingly relies on private-sector partnerships for exploration projects.

The proposed reorganization at Codelco’s northern mines would include sending ore from one pit to another’s plants and blending material to better align with customer needs, according to the people. One option would entail cutting management roles, although on-the-ground teams would remain intact, the people said. Talks with unions are already under way.