Chile mulls private-sector role in Codelco’s mines and infrastructure
Chile is considering ways to bring private companies into Codelco’s mining operations and infrastructure, potentially forming partnerships well beyond the exploration ventures currently used by the state copper giant.
Those companies could participate in the exploitation of some Codelco deposits or team up with the company on infrastructure and processing facilities, Mining and Economy Minister Daniel Mas said in an interview on Friday. The government is evaluating legal changes that could pave the way for private participation in deposits currently reserved for Codelco, he said.
Mas’s comments stand to further inflame a politically charged debate over private capital at Codelco, after leftist politicians and unions raised concerns that President José Antonio Kast’s government could be laying the groundwork for privatization. The company has struggled to reverse a production slump as operational setbacks, project delays and declining ore grades weigh on its aging mines. In an interview with Bloomberg News this week, Finance Minister Jorge Quiroz left the door open to private investment in the company itself.
Mas stressed that Codelco will remain state-owned and said the government isn’t currently discussing the introduction of minority shareholders. Still, trying to bring private companies into some existing mining operations would push its partnership strategy into more sensitive territory than exploration ventures on undeveloped properties.
The alliances described by Mas could be key to Codelco’s chances of lifting output over the next several years. Exploration partnerships can help unlock the firm’s vast geological potential, but discoveries can take decades to reach production.
The strategy also has implications for a global market struggling to bring on enough new supply to meet growing demand from power grids, electrification and data centers.
“We have to look for private partners,” Mas said from his office in downtown Santiago ahead of a state visit to Vietnam, China and Japan, where critical minerals will be a focus of meetings with potential investors. “The most obvious thing is for them to enter exploration. But the other is in exploitation.”
Mas said private participation in exploitation would be easier at some mines than others, with some cases potentially requiring legal changes.
More pressing
Codelco’s need for outside capital has become more pressing as declining production and record debt constrain its ability to finance projects. Mas said the government wants the company to operate safely and profitably without continuing to increase borrowing.
One option would be for Codelco and private miners to jointly develop facilities or share infrastructure to capture economies of scale, Mas said. Asked specifically whether private capital could participate in an existing operation such as the Gabriela Mistral mine, Mas didn’t rule it out.
“We are looking at private capital in all the areas where it is possible,” Mas said.
“If we are all convinced that Codelco has the potential to grow” — and that it faces capital constraints — “well, this is the formula,” he said. “I’d like there to be broad consensus in Congress to be able to approve it.”
The precise mechanisms haven’t been determined. Mas said Codelco should design the appropriate structures, while the government as shareholder sets parameters including debt limits, profitability and safety.
Codelco is also reviewing potential sales of non-core assets as it seeks to focus capital on its main operations. Among the assets that could be reviewed include company interests abroad, as well as its investments in ports, Mas said.
For now, the priority is to stabilize operations and to put finances in order before returning to growth, Mas said.
The overhaul has taken on greater urgency after Codelco disclosed irregularities that falsely boosted reported copper output in 2024 and 2025. The firm has dismissed managers, referred the matter to prosecutors and commissioned outside audits.
Despite its problems, Mas said Codelco remains attractive to potential partners because of its geological assets, workforce and technical expertise. Its potential remains “gigantic,” he said.
(By James Attwood and Carolina Gonzalez)
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