Codelco Boosts Fiscal Contribution to $1.778 Billion in 2025 Amid Government’s ‘Failed State’ Claims

Original article: ¿Estado quebrado? Codelco elevó su aporte al Fisco a US$ 1. 778 millones en 2025 Codelco Boosts Fiscal Contribution to $1.

778 Billion in 2025 Amid Government’s ‘Failed State’ Claims In light of the narrative pushed by José Antonio Kast’s administration regarding a supposedly «failed state,» the National Copper Corporation of Chile (Codelco) has released figures that contradict any catastrophic claims about public finances. During the fiscal year 2025, the state-owned mining company reported a significant increase in its contributions to the treasury, reaching $1. 778 billion—this amount represents a 16% increase compared to the previous year.

In a recent statement regarding last year’s results, Codelco highlighted improvements in its financial and production indicators compared to 2024. While the right-wing administration continues to promote a narrative of fiscal emergency, the copper giant—Chile’s main source of income—not only maintains its output but also increases it, establishing itself as an economic bulwark that contrasts sharply with the official narrative of collapse. Codelco’s financial result extends beyond direct contributions.

The state enterprise reported an EBITDA (earnings before interest, taxes, depreciation, and amortization) of $6. 67 billion for 2025, indicating a 23% growth compared to $5. 439 billion the previous year.

This operational robustness translated into a consolidated profit of $2. 423 billion. Although this figure includes an exceptional accounting effect of $2.

035 billion from the acquisition of 50% plus one share of Novandino Litio—the joint venture with SQM for lithium extraction in the Salar de Atacama—even excluding this historic operation, the corporation’s base profit reached $388 million, surpassing 58% of the figure from 2024. In this context, the fiscal evidence presented by the miner refutes the presidential argument of a critically strained public treasury. Rather than failing, the state, through its primary enterprise, has increased its ability to generate resources for the national budget.

While La Moneda attempts to establish the thesis of a state incapable of financing, justifying controversial measures such as the historic increase in fuel prices dubbed the «bencinazo»; the $72 million budget cut for security; reduced taxes for wealthy businessmen; changes to the free education system; and new mechanisms for collecting the CAE, Codelco has demonstrated that, with stabilized production and a focus on operational efficiency, it is possible not only to maintain but also to enhance the transfer of wealth to the public purse. Codelco’s CEO, Rubén Alvarado, stated that «2025 was a year of stabilization and adaptation of production to a complex operational environment marked by the accident at El Teniente and other contingencies that impacted extraction rates, mineral feed, and certain industrial processes at some sites. » «In response, we have decisively reinforced safety, reliability, continuity, and operational discipline to consolidate the progress made and regain a path of sustainable growth,» he detailed in the corporate balance.

Alvarado emphasized that the level of execution achieved signifies that the company is strengthening its capabilities. «The level of physical and financial execution achieved is unprecedented. It is a concrete indication that Codelco is enhancing its capacity to execute, fulfill, and develop its commitments with discipline, which in turn extends the useful life of its deposits and guarantees its production and contributions for the future,» he added, referencing the deployment of investments that reached a historical record of $5.

073 billion in Capex. The corporation’s total production, including its participation in other operations such as El Abra, Anglo American Sur, and Quebrada Blanca, totaled 1,439,732 metric tons (mt). Production in Codelco Divisions Its own production reached 1,334,445 mt, 0.

5% higher than in 2024. This increase represents approximately 6,000 additional tons of copper. The divisions exhibited varying performances.

While the Ministro Holes deposit experienced a spectacular increase of 25. 1% in its production, reaching 153,000 mt, and Radomiro Tomic grew by 9. 2% to 295,000 mt, the El Teniente Division faced a 13% contraction, standing at 310,000 tons due to restrictions following the fatal accident in its facilities.

Moreover, Chuquicamata fell by 8%, and Gabriela Mistral saw a decrease of 20. 3%, the latter due to deteriorating mineral grades. Regarding costs, the company reported a direct cost (C1) of 208.

6 cents per pound, representing a 4. 8% increase attributed to higher support services for production and the recovery of mine development through equipment leases. This effect was partially offset by the decrease in prices of inputs such as electricity and diesel.

Meanwhile, the net cost to cathode (C3) rose by 13. 55%, reaching 372. 9 cents per pound, incorporating the exchange rate effect on liabilities denominated in pesos.

In a year marked by political tensions surrounding the lithium industry, the report indicated that the consolidated profit at the close of 2025 was $2. 423 billion, an increase of $2. 178 billion compared to 2024.

This surge resulted from the recognition of the fair value of acquiring 50% plus one share of Novandino Litio, the joint venture with SQM for lithium extraction in the Salar de Atacama, generating a profit of $2. 035 billion after taxes. «Excluding the exceptional profit from this acquisition, Codelco’s profit reached $388 million, $143 million above 2024 (an increase of 58%),» it added.

Development of Public-Private Partnerships Additionally, the company highlighted its strategy of deepening public-private partnerships with international firms for lithium extraction, developing new copper smelters in Chile, and advancing technology and innovation sectors. Alvarado underscored the joint venture Nova Andino Litio with SQM; the agreement with Rio Tinto in Maricunga; the MoU with Anglo American for the Andina-Los Bronces district; and exploration partnerships with BHP and Indian group Adani. On the sustainability and human resources front, the corporation also reported advancements that solidify its role as an industrial leader, becoming the first mining company in Chile to measure its blue water footprint, and reaching 2,935 women in its workforce—the highest in the national mining industry, with 40% of new contracts awarded to women.

Codelco Results Disprove ‘Failed State’ Thesis The conclusion from the 2025 balance is clear. While José Antonio Kast’s government insists on a narrative of a bankrupt state to justify an austerity plan and spending cuts, the country’s leading company demonstrates, with certified numbers, that it is not only standing but also expanding its capacity to generate wealth. The contribution of $1.

778 billion to the treasury is not the figure of a state-owned copper company in crisis, but that of a corporation that is a robust fiscal engine for Chile.