en.Wedoany.com Reported - Chile's state-owned copper company Codelco is planning an operational restructuring of its three core mining districts around Calama in the Antofagasta Region—Chuquicamata, Radomiro Tomic, and Ministro Hales. According to Bloomberg, this integration plan is expected to generate approximately US$2 billion in benefits through cost savings and increased operational revenue.
The core of the plan is to unify mining planning across the three districts, share processing facilities, and ultimately move towards a common management structure. Reports indicate that the first effects of the integration could become visible starting in 2027. This proposal has been submitted to Codelco's board of directors as part of the four-year production plan presented to the government.
This integration focuses on three key assets in the northern mining region: Chuquicamata, located 15 kilometers north of Calama, is undergoing an operational transition; Radomiro Tomic, situated in the city of Calama at an altitude of 3,000 meters; and Ministro Hales, located nearly 10 kilometers north of Calama, primarily producing copper calcine, copper concentrate, and silver. The industrial logic of the plan lies in the geographical proximity of these mining districts and the possibility of integrating ore, plant capacity, maintenance, logistics, and mine management under unified coordination. This is not about developing new mines or greenfield investments, but rather restructuring the value of existing assets.
Looking at the data, Codelco's own copper production in 2025 was 1,334,445 metric tons, a year-on-year increase of 0.5%; total production reached 1,439,732 metric tons. EBITDA reached US$6.7 billion, with investment during the period totaling US$5.073 billion and contributions to the state treasury of US$1.778 billion. Despite showing a partial recovery, structural challenges persist. In 2025, Chuquicamata's production was 266,000 tons (compared to 289,000 tons in 2024); Radomiro Tomic's production increased from 270,000 tons to 295,000 tons; and Ministro Hales' production rose from 122,000 tons to 153,000 tons. These three mining districts are crucial for stabilizing the production of this state-owned copper mining enterprise.
Radomiro Tomic and Ministro Hales carry greater weight in this integration plan. Radomiro Tomic's production grew by 9.2% in 2025, mainly driven by increased sulfide processing volumes. Ministro Hales saw a 25.1% production increase due to higher grades and mine development. Integration with Chuquicamata means ore can be allocated more efficiently to available plants, reducing inefficiencies between adjacent operations. The fundamental logic is to capture benefits through integration in a context of geological constraints, declining ore grades, cost pressures, and higher demands for operational continuity.
This restructuring comes at a sensitive time for Codelco. As of the third quarter of 2025, its direct cost C1 rose 4.4% year-on-year to 214 cents per pound, due to factors including rising operational costs, equipment leasing, mining activities at Radomiro Tomic, and the start-up of the Rajo Inca mine. According to Reuters, the company plans to invest US$3.914 billion in 2026, with projected production of 1.344 million tons and an estimated direct cost of 220.2 cents per pound. Meanwhile, the state-owned enterprise faces debt pressure of nearly US$24 billion and is striving to achieve a production target of 1.7 million tons by 2030.
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