Chile allows Codelco to retain profits
CONEXPO-CON/AGG, Taking Construction to the Next Level
SPONSOREDconexpo-con/agg 2023
Advancing Copper and Gold Projects in an Under-Explored Porphyry District
SPONSOREDresilience mining
Servicing China's Steel Sector
SPONSOREDaspire mining
SPONSOREDxanadu mines
Codelco typically has to pass its profits to the national treasury and request funds from the national budget, which it has supplemented with raising funds on the international bond market.
The decision announced by finance minister Mario Marcel will help strengthen the company's balance sheet and reduce its need to raise more debt.
CONEXPO-CON/AGG, Taking Construction to the Next Level
SPONSOREDconexpo-con/agg 2023
Advancing Copper and Gold Projects in an Under-Explored Porphyry District
SPONSOREDresilience mining
Servicing China's Steel Sector
SPONSOREDaspire mining
SPONSOREDxanadu mines
"As the government of president Boric, we have proposed to take care of Codelco, in order to ensure the sustainability of its contribution to the country. The reinvestment of part of its profits would make it possible to control the level of indebtedness and reduce the company's financing costs and, to the extent that Codelco invests in good projects, it will also be a source of future profitability for the state," said Marcel.
Recent years have seen Codelco investing in a number of structural projects which promise to ensure the viability of its main operations for decades to come, such as the Andina Transfer project, Chuquicamata underground and a new mine level at El Teniente.
Codelco has a US$32 billion investment plan through 2027. It ended 2021 with $17.7 billion in debt. The company reported profits of $1.9 billion in 2021.
"This policy … is a clear demonstration of the confidence and commitment of the government of president Boric with the role of our company and the contribution we make to the development of the country and its regions," said Codelco chair Maximo Pacheco.