Codelco Copper Output Takes Back Seat to Profit

• Codelco copper output drops to a 28-year low
• Chairman Bernardo Fontaine prioritizes profit over volume
• $25 billion debt load drives a major strategic reset
• New executive president Jorge Gómez takes operational control
• External audit targets governance and reporting failures

Codelco Copper Output Falls to a 28-Year Low

Codelco copper output has fallen to its lowest level in 28 years, and the company’s new chairman says reversing that slide is no longer the priority. Bernardo Fontaine, who took over as chairman of the Chilean state copper corporation in May 2026, told newspaper El Mercurio that Codelco will prioritize profitability over production growth as it works through a $25 billion debt load, governance controversies, and a leadership overhaul.

The shift marks a departure from Codelco’s decades-long identity as a volume-first producer. For a company that has defined itself by scale since the 1970s, a chairman openly saying output is no longer the top priority is a notable signal to markets, employees, and the Chilean government alike.

A New Chairman, A New Executive President

Fontaine was appointed by President José Antonio Kast’s administration, replacing Máximo Pacheco after Pacheco’s four-year term ended. He said the company is reassessing its strategy through an external audit aimed at identifying operational improvements and new opportunities. Jorge Gómez assumed the role of executive president, a position comparable to chief executive officer, this week, replacing Rubén Alvarado Vigar.

Fontaine’s arrival follows a sharp public critique of Codelco’s recent performance from Chile’s new mining minister, Daniel Mas, who has pushed for a faster operational and governance reset at the company. The pairing of new board leadership with a new executive president in the same week signals a coordinated effort to move quickly rather than manage the transition gradually.

Debt and Governance Pressure Behind the Codelco Copper Output Shift

Codelco carries around $25 billion in debt, including more than $20 billion in international bonds, after years of declining production. “Our results have been weak, and production has fallen below estimates for the past seven years,” Fontaine said, adding that the company’s extensive operating infrastructure gives it a strong foundation to improve. Codelco produced 1,334,400 tonnes of refined copper in 2025, a stabilization after several years of decline, though still well short of the roughly 1.7 million tonnes it hit at its 2017 peak, which remains the company’s medium-term target. Buyers tracking near-term price movement can see current levels on CMN’s copper price tracker.

The leadership change comes amid deepening scrutiny. Diario Financiero published an interview with dismissed former executive César Márquez, who defended the company’s reported output figures as legitimate and said senior management understood how they were presented. The dispute centers on a production overstatement that reportedly triggered bonus payments, prompting Minister Mas to describe the company as “out of control.”

Why Codelco’s Strategy Shift Matters for Copper Supply

Codelco remains the world’s largest copper producer, and its turnaround is being watched closely as demand tied to AI infrastructure, electrification, and the broader energy transition raises the stakes for reliable supply. Forecasters have pointed to a widening global supply gap by the mid-2030s if new mine capacity fails to keep pace with demand growth, which puts extra weight on how quickly established producers like Codelco can stabilize output. Chile’s critical minerals sector, covered in full on CMN’s Chile critical minerals hub, depends heavily on Codelco’s output trajectory.

Analysts at Chilean research institute Cesco have floated options including asset divestitures, capital markets fundraising, and a shift to a holding company structure to give Codelco more room for external partnerships, all under a chairman whose stated position is: “We don’t need to be bigger, we need to be profitable.” That framing puts Codelco copper output on a different footing than in previous years, a company managing decline into stability rather than chasing a return to peak volume. The company still sits alongside the world’s other major producers on CMN’s ranking of the top copper mining companies, a position its new leadership is now trying to defend on profitability terms rather than tonnage.

Background on Codelco’s operations, history, and financial position is covered in full in CMN’s Codelco company profile.