COPPER, CONTINUITY AND THE LONG VIEW
COPPER, CONTINUITY AND THE LONG VIEW
In an industry defined by cycles, geology and national significance, few companies carry the weight, scale and legacy of Codelco. As the world’s largest copper producer, the Chilean state owned miner operates at a scale that shapes global supply, influences downstream industries and underpins one of Latin America’s most important economies. Yet scale alone does not explain Codelco’s enduring relevance. What defines the company today is how it balances history with transformation, operational continuity with technological change, and copper leadership with a rapidly expanding role in the energy transition.
Founded in 1976 following the nationalisation of Chile’s major copper assets, Codelco has evolved into a complex industrial organisation with seven mining divisions and a fully integrated smelter and refinery. From its headquarters at Huerfanos 1270 in Santiago, the company oversees operations that include some of the most iconic copper assets in the world, from Chuquicamata to El Teniente. These are not simply mines but long life industrial ecosystems, many of which have
been in continuous operation for decades and are now undergoing profound structural transformation to extend their productive futures.
Codelco’s role in the global copper market is inseparable from Chile’s economic identity. Copper revenues have long been a cornerstone of national development, funding public services and infrastructure while positioning Chile as a strategic supplier to the world. Today, as copper demand accelerates due to electrification, renewable energy, electric vehicles and digital infrastructure, that strategic role has only intensified. The challenge for Codelco is not whether demand will exist, but how to meet it responsibly, efficiently and competitively while managing ageing assets and rising technical complexity.
At the centre of this balancing act is leadership that understands both the political weight and the operational reality of the business. Since his appointment as Chairman in March 2022, Máximo Pacheco has been vocal about the need for long term thinking in resource development. Speaking at international forums
CODELCO PROJECT DIRECTED BY: GARY SMITH
including Resourcing Tomorrow, Pacheco has consistently framed mining as a generational endeavour, one that requires stability, social legitimacy and continuous reinvestment. His message is not one of short term optimisation, but of continuity and renewal, recognising that Codelco’s future depends on decisions made today about technology, partnerships and environmental stewardship.
Those decisions are playing out most visibly in Codelco’s approach to asset renewal. Many of its flagship operations are transitioning from open pit to underground mining, a shift that requires vast capital investment, advanced engineering and precision execution. At Chuquicamata, one of the largest open pit copper mines ever developed, the move underground represents a complete reimagining of how ore is accessed and processed. This transition is not only about extending mine life, but about embedding safer, more efficient and more automated mining methods that align
with modern expectations of productivity and worker wellbeing.
Technology is increasingly central to this transformation. In 2024, Codelco signed an agreement with Hexagon to develop and implement advanced technological solutions across its operations. The partnership focuses on digitalisation, data integration and operational intelligence, reflecting a broader industry shift towards smart mining. For Codelco, this is less about experimentation and more about industrial scale deployment, integrating digital tools into existing operations that span vast geographies and decades of legacy infrastructure.
The emphasis on technology extends beyond software and analytics to heavy equipment and on site innovation. Codelco’s long standing relationships with global engineering and equipment partners form a critical part of its operational resilience. Companies such as Howden, Züblin, Epiroc and XCMG have
At Chuquicamata, one of the largest open pit copper mines ever developed, the move underground represents a complete reimagining of how ore is accessed and processed
supported the company across ventilation, tunnelling, drilling and material handling, contributing expertise that complements Codelco’s in house capabilities.
The presence of XCMG equipment at Chuquicamata is emblematic of this
collaborative approach. The deployment of large scale cranes and machinery at one of the world’s most technically demanding mining environments highlights how Codelco integrates global manufacturing capability into local operational needs. These partnerships are not transactional. Many have evolved over decades, built on shared safety standards, technical trust and a mutual understanding of what it takes to operate at extreme scale and altitude.
While copper remains the core of Codelco’s identity, the company’s strategic horizon has expanded decisively into lithium. In 2024, Chile took a historic step with the formation of NovaAndino Litio, a joint venture between Codelco and SQM for lithium development in the Salar de Atacama. The agreement marked a significant milestone in Chile’s national lithium strategy, positioning Codelco as a central actor not only in copper, but in the materials critical to battery technology and energy storage.
The NovaAndino Litio venture reflects a pragmatic approach to resource development. Rather than building lithium expertise from scratch, Codelco has partnered with an established producer, combining operational knowledge with state stewardship. For Codelco, lithium is not a departure from its mission but a natural extension of it. Both copper and lithium are essential to the energy transition, and Chile’s geological endowment places the country at the heart of that transformation.
What distinguishes Codelco’s entry into lithium is its emphasis on governance, sustainability and long term value creation. The Salar de Atacama is a sensitive environmental and cultural landscape, and lithium extraction carries complex water management and social considerations. Codelco’s involvement brings a level of public accountability and institutional oversight that aligns with national priorities. It also reinforces the company’s role as a steward of strategic resources rather than simply an extractor of commodities.
This dual focus on copper and lithium underscores a broader theme in Codelco’s evolution. The company is no longer defined solely by volume and output, but by how it positions itself within global supply chains that are increasingly scrutinised for environmental and social impact. Investors, governments and downstream customers are demanding transparency, traceability and responsible sourcing. For a state owned enterprise of Codelco’s size, meeting these expectations is both a challenge and an opportunity to set benchmarks for the industry.
Internally, this has translated into renewed attention on sustainability, workforce development and safety. Modernising operations while maintaining production requires a highly skilled workforce capable of operating advanced equipment and digital systems. Codelco’s transition projects are as much about people as they are about technology, involving retraining, new roles and a cultural shift towards data driven decision making. In this context,
long standing contractor relationships provide continuity, enabling knowledge transfer and operational stability during periods of change.
The scale of Codelco’s investment programme is substantial, reflecting the reality that extending the life of world class assets is capital intensive. Yet the alternative, declining production from ageing mines, would carry far greater economic and strategic costs. Codelco’s leadership has been clear that sustained investment is essential to maintaining Chile’s position in global copper markets, particularly as new projects elsewhere face permitting challenges and rising development costs.
On the international stage, Codelco’s actions are closely watched. As the largest copper producer, its output decisions influence market dynamics, while its approach to lithium sets precedents for state participation in critical minerals. The company’s partnerships with technology providers and equipment manufacturers also signal where industrial innovation is heading, especially in underground mining, automation and digital integration.
Despite its size and history, Codelco is not insulated from the pressures facing the mining sector. Cost inflation, energy prices, water scarcity and community expectations all shape operational realities.
MINING CODELCO
What differentiates Codelco is its ability to absorb these pressures within a long term framework that prioritises continuity over short term optimisation. This perspective is particularly evident in how the company approaches stakeholder engagement, recognising that social licence is earned through consistency, transparency and tangible local benefits.
Looking ahead, Codelco’s trajectory will be defined by execution. Transitioning major mines, integrating new technologies, scaling lithium operations and maintaining copper leadership simultaneously is a complex undertaking. Success will depend on disciplined project management, robust partnerships and leadership that can align political, economic and operational objectives. The foundations for this are already visible in the company’s strategic choices and collaborative approach.
In many ways, Codelco represents a distinctive model of modern mining. It is state owned yet globally competitive, rooted in legacy assets yet oriented towards future materials, and deeply national in its mandate yet international in its partnerships. As the energy transition accelerates and demand for critical minerals intensifies, this combination of scale, stewardship and adaptability positions Codelco as more than a producer. It positions it as a long term industrial anchor in a rapidly changing world.
For Business Enquirer readers, Codelco’s story offers insight into how large scale resource companies can evolve without losing their core identity. It illustrates the importance of patient capital, strategic partnerships and leadership that understands mining as a multigenerational endeavour. In copper, lithium and beyond, Codelco is not chasing trends. It is shaping the material foundations of the next industrial era, grounded in continuity, collaboration and a clear sense of national purpose.
www.codelco.com