By Natalia A. Ramos Miranda, Natalia Siniawski and Kylie Madry
SANTIAGO, Aug 28 (Reuters) – Chilean state miner Codelco on Friday reported sharply stronger first-half earnings as higher copper prices outweighed weaker production and higher costs, while new Chief Executive Jorge Gomez said the company’s priority was to restore productivity after setbacks at key mines.
Codelco reported pre-tax profit of $1.97 billion for the first half of 2026, up more than fourfold from the $429 million posted in the same period a year earlier.
The six-month period was “marked by lower production levels and higher costs, yet by significantly better financial results, driven by a favorable copper price environment,” Codelco said in a statement.
Its own copper production fell 11% to 564,000 metric tons, down from 634,000 tons a year earlier, mainly because of operational restrictions at El Teniente, lower output at Chuquicamata and weaker ore grades at Ministro Hales.
A fatal accident in late July that killed six workers disrupted operations at El Teniente, located in the Andes mountains some 90 km (56 miles) south of Santiago.
Codelco paused development of the mine’s Andes Norte section earlier this month after studies showed higher-than-expected seismic risks, but still expects to start production there in 2029.
The weaker output also pushed up costs. Codelco’s direct cash cost rose 7% to 231.6 cents per pound, though the company’s realized copper price jumped to 653.2 cents per pound from 461.7 cents a year earlier, helping lift earnings.
Codelco did not mention its 2026 output forecast in the report. It had previously targeted 1.33 million tons to 1.36 million tons for this year, though Chairman Bernardo Fontaine said earlier this month that the company’s current production trend made the target difficult to achieve.
The results come as CEO Gomez seeks to reverse years of production declines while dealing with the fallout from operational disruptions at El Teniente and a review of the miner’s investment priorities and debt burden.
(Reporting by Natalia Ramos, Natalia Siniawski and Kylie Madry; Editing by Alistair Bell)
