Sunday, October 19, 2025

Latest

Codelco: World’s Largest Copper Producer Faces Insolvency Risk Thanks to Rising Debt Levels

Chile’s leading copper producer, Codelco, is finding itself in troubled waters. This is according to a report by Chile’s Centre for Copper and Mining Studies (CESCO), which revealed that the company— the world’s largest copper producer, stands on the brink of insolvency. The primary culprits? Escalating costs and a swelling debt burden due to underperforming projects.

CESCO’s report details how Codelco’s endeavors to upgrade five of its mines, termed “structural projects,” have led to cost overruns. This mismanagement could skyrocket its debt from its current $18 billion to a staggering $30 billion by 2030. Codelco, in its defense, emphasized its robust financial standing and vast access to financial markets, supported by their high credit ratings. The company also underlined its commitment to monitoring debt growth, stating it largely hinges on the success of investment projects and operational performance.

Further intensifying the situation was the resignation of Codelco’s CEO Andre Sougarret a mere year after his appointment. He pointed to “complexities” around the business as the reason for his departure. Codelco, a vital company in Chile’s mining sector, is grappling to resurrect its copper production from a record 25-year low. Despite a $15 billion investment, notably in key projects like El Teniente and Chuquicamata which overshot costs by 75% and 53% respectively, its production remains poor.

CESCO urges a critical review of the technical viability of these projects before further investment. It stresses that the current debt, threatening the nation’s primary asset’s financial feasibility, should be a priority. The organization also raised concerns over Codelco’s venture into lithium mining, which might divert its attention from copper, a resource pivotal for the global energy transition. However Codelco for its part reaffirmed its unwavering focus on copper production, ensuring no resource diversion.

Information for this story was found via Reuters and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Chilean Authorities Investigate Incident at Albemarle Lithium Plant

Chilean regulators are investigating a safety incident at Albemarle Corp.’s (NYSE: ALB) lithium processing facility...

Wednesday, August 13, 2025, 03:44:00 PM

Chile’s Lithium Industry: Nationalization & The Global Impact

Today we are diving into the world of lithium. The key ingredient in those batteries...

Monday, May 1, 2023, 01:30:00 PM

Chile Approves Legislation to Slash Mining Permit Times by Up to 70%

Chilean lawmakers passed the Framework Law for Sectoral Authorizations on Tuesday, aimed at cutting permitting...

Thursday, July 3, 2025, 08:15:17 AM

Chile’s SQM Suspends Lithium Operations Amidst Atacama Salt Flat Protests

Chile’s SQM, the world’s second-largest lithium producer, has halted operations at the Atacama salt flat...

Sunday, January 14, 2024, 02:40:00 PM

Codelco Raises Loss Estimate from El Teniente Collapse, Calls It ‘New Phenomenon’

Codelco has increased its loss estimate from the deadly El Teniente mine collapse to 48,000...

Monday, October 13, 2025, 03:41:00 PM