Santiago, August 22, 2025.- In the first-half results report, postponed following the accident at El Teniente, it was reported that Codelco's own production reached 634,000 tons between January and June of this year, an increase of 9.3% compared to the same period in 2024, equivalent to an additional 54,000 tons.

“The care and safety of our workers are always our first priority. By the end of July, we had improved management compared to the previous year and achieved increased production, accompanied by improved safety rates. However, following the unfortunate accident on July 31, we are focused on our plan for a safe and gradual return to operations at El Teniente. At Codelco, we are fully aware of the importance for the country of restoring operational continuity, but that objective must always be aligned with the safety and well-being of those who are part of our Corporation,” emphasized Codelco CEO Rubén Alvarado.

In the first half of the year, production increases were notable at the Ministro Hales and El Teniente divisions, as well as the Rajo Inca structural project in Salvador, which has been in the ramp-up stage (a gradual production increase) since last December and has added 17,000 tons of output in the first half of the year.

In recent months, the fruits of the mine development efforts across various divisions have also begun to become evident, aimed at enabling new phases and sectors within the mine sites. This strategy allows for more efficient access to the mineral, avoiding single-phase pits—that is, pits with a single production phase—and thus reducing the risk of potential incidents affecting plant supply.

An example of this is that, since 2023, Ministro Hales has focused on enabling mining at more than one level in subsequent years. This has allowed its production this semester to increase by 87.6% compared to the same period last year (66.8 ktpd from 35.6 ktpd). Furthermore, since 2024, thanks to this mining development strategy, Andina has increased the quality of the mineral extracted.

Adding Codelco's stake in El Abra (49%), Anglo American Sur (20%) and Quebrada Blanca (10%), total production reached 689 thousand tons, 61 thousand tons (9.6%) more than in the first half of 2024.

Costs rise, but contributions to the Treasury improve

In the first half of the year, cash costs (C1) increased 6%, reaching 215.7 cents per pound. This increase is primarily explained by the start of operations at the Inca Pit, which meant that the operating costs were fully reflected during the first half of 2025. Also impacting this were increased activity at the Radomiro Tomic Division and higher operating costs, associated with the mine development strategy at the various deposits, which included equipment leasing to regain operational flexibility. This was compounded by the impact of higher inflation compared to the same period last year. These increases were partially offset by lower prices for key inputs, such as electricity and fuel.

The net cathode cost (C3), meanwhile, rose 9.4% to 365.6 cents per pound, for the same reasons as C1, plus the accounting impact of the exchange rate on the variation in liabilities denominated in pesos.

EBITDA (earnings before interest, taxes, depreciation, and amortization, and before the Reserved Copper Law) reached US$2,762 million in the first half of the year, representing a decrease of US$134 million, equivalent to -4.6%, compared to the first half of 2024. This variation is mainly explained by higher non-operating losses, in particular, the impact of the exchange rate on peso-denominated liabilities, which exceeds the increase in gross margin, although this does not affect cash flow. Nevertheless, EBITDA of US$2,762 million is equivalent to a daily profit of US$15 million during the first six months.

Despite higher costs and a decline in EBITDA, contributions to the Treasury increased by 24% in the first half of the year, totaling US$814 million. This reinforces the Corporation's projection of surpassing the contributions recorded in 2024 by year-end and reaffirming its commitment to the country's development.

Progress of structural projects

The desalination plant being built by the Aguas Horizonte consortium in Tocopilla for Codelco has reached 81% completion in the first half of the year, and production is expected to begin in 2026.

At the Salvador Division, the Inca Pit has reached 92% completion, and work continues to optimize the concentrator and hydrometallurgical plants. The ramp-up of the concentrator is estimated for the second half of this year.

In the Teniente Project Portfolio, Andes Norte, which began production in May of this year, is 79% complete; while Diamante has reached 46%. The division's project portfolio will need to be reviewed following the July 31 accident.

At the end of June, the company's Capex execution reached US$2.512 billion (9% higher than the same period last year), based on an annual budget of US$5.638 billion, a figure that includes mine development projects and expenses. This represents a financial progress of 45% in the first half of the year; while physical progress was 50% compared to the 2025 plan.

Accident in El Teniente

The state-run company's results release, which was scheduled for Friday, August 1, was postponed until today following the accident that occurred in the El Teniente Division the previous day, July 31.

In these 22 days, El Teniente implemented a plan to assist families, provide support, and provide psychological support for employees; and a plan to safely and gradually restart operations, while internal and regulatory investigations continue.

The victims' families received psychological support and funeral assistance. To date, 20,917 El Teniente workers have participated in reflection, support, and training sessions; 1,216 consultations have been provided by the Psychosocial Containment and Guidance Center (CECOP), with the support of mutual insurance companies; and 824 worker supervisors have been trained in psychological first aid.

Regarding the return to work, to date, Sernageomin has authorized the opening of 8 of the 12 operations that comprise the DET, of which 6 have been activated, reflecting a gradual, rigorous restart process under strict safety criteria.

On the other hand, the company has received 47 requests from various supervisory and investigative authorities, all of which were responded to within the deadline: 16 from Sernageomin, 8 from the Labor Directorate, 16 from the Regional Prosecutor's Office, 3 from the Chamber of Deputies, 2 from the PDI, 1 from the Seremi of Health, and 1 from the Superintendency of Social Security.

To date, Codelco's Internal Investigation Commission, headed by Julio Díaz, Vice President of Mining Resources, Development, and Innovation, continues to make progress. Meanwhile, Mark Cutifani will arrive in Chile in the coming days to lead the team of international experts who will conduct the independent evaluation of the accident commissioned by the Board of Directors.

Safe and progressive return to operations

The plan for a safe and gradual return to operations is being developed in close coordination with unions and contracting companies, and is always subject to authorization from the regulatory agencies, the National Geology and Mining Service (Sernageomin) and the Directorate of Labor (DT).

To request the gradual resumption of operations by zone, the company must submit a technical report guaranteeing that all measures and conditions safeguarding human safety, the stability of critical infrastructure, and compliance with the current regulatory framework are being met in these sectors. The DT (Teaching Department) must verify that the conditions of habitability are being met, and Sernageomin (Ministry of Mines and Mine Safety) must determine whether the standards of the Mining Safety Regulations are being met, inspect the zones, and determine that its conclusions coincide with the report submitted by El Teniente.

To date, the resumption of operations and mining preparation has been authorized in eight sectors: the Esmeralda Panel, the Reno Panel, the Diablo Regimiento, the Upper Pacific, Esmeralda and Pilar Norte, and Dacita and Reservas Norte. These last two sectors will restart work next week.

Last weekend, Codelco also requested authorization to restart operations at Diamante and Andes Norte, which is still pending approval from the Ministry of Transportation and Mines (TD) and Sernageomin.

In total, six of the 12 operations comprising the DET have been opened to date, reflecting a gradual, rigorous restart process under strict safety criteria.

Codelco