Codelco Forecasts Slight Increase in 2024 Copper Output

Codelco Seeks to Revive Copper Output in 2026

Codelco, the Chilean state-owned miner, is aiming to produce 1.344 million metric tons of copper in 2026, a slight increase from the 1.333 million tons produced last year. This target is part of the company's efforts to recover from operational and project setbacks, including declining ore grades and delays at several projects.

The company's executive chairman, Máximo Pacheco, is working to revive output, which sank to a 25-year low in 2025. Pacheco, who is set to step down in May at the age of 73, is seeking to restore production to pre-pandemic levels of approximately 1.7 million tons. This would potentially allow Codelco to reclaim its position as the world's top copper producer from BHP Group.

The copper market is expected to experience a supply shortage, driven by the increasing demand from the artificial intelligence-driven data center boom and the shift towards electric vehicles. Codelco met its 2025 target due to a strong December, but production fell back in January.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

In addition to its internal production targets, Codelco has also provided an early estimate of the cost impact from the Middle East conflict, which is expected to be around 5%.