Santiago, November 4, 2025 - Codelco's own production reached 937,000 tons of fine copper between January and September of this year, representing a growth of 19,000 tons, equivalent to a 2.1% increase compared to the same period in 2024. Adding the participation in El Abra (49%), Anglo American Sur (20%) and Quebrada Blanca (10%), total production reached 1,016,000 tons, 1.4% above the amount accumulated in the third quarter of last year.

“This increase is especially significant because we managed to maintain the growth trend in production, despite the complex scenario we faced following the accident at El Teniente. During this period, we focused our efforts on the safe return plan, safeguarding the safety and well-being of everyone who is part of Codelco,” highlighted Rubén Alvarado, CEO of Codelco.

Accident at El Teniente

Following the July 31 accident at the El Teniente Division, which claimed the lives of six workers after a rockfall caused by a seismic event, Codelco launched a Safe Return Plan, developed in close coordination with unions and contracting companies, including immediate measures to strengthen critical controls and align safety behaviors.

Meanwhile, Codelco's Internal Investigation Commission, headed by Vice President of Mining Resources, Development and Innovation, Julio Díaz, issued a preliminary report with some conclusions about the rock burst following the 4.3 Mw seismic event with an energy of 6.17x 10 ⁹ Joules.

Among its findings, the report establishes that the earthquake was a larger and more complex phenomenon than those that have occurred in the last 35 years. It also identifies the need to review and strengthen the integrated geomechanical monitoring and modeling system to incorporate new variables and scenarios in order to anticipate future behavior across the entire reservoir.

The investigation also determined that none of the previous seismic records showed anomalous movements of a magnitude that would have served as warning signals. It also verified that, from the first minute of the main event, the activation and emergency management protocols were correctly implemented, allowing for the evacuation of approximately 2,500 workers to safe areas.

Thus, the investigation determines that the most likely cause of the explosion is a vertical discharge process, resulting from geometric changes and the interaction of cavities in the northwest of the deposit. In other words, this means that the shape of the terrain has changed, affecting how the material is supported in the deposit.

 Operational results

So far in 2025, the 2.1% production growth is largely due to increased production at Ministro Hales, which has focused on enabling mining on more than one level, and the contributions of the Rajo Inca structural project in Salvador, which has been in the ramp-up phase since December 2024 and has contributed 21,200 tons this year. Conversely, the accident on July 31 resulted in a production decrease of 22,100 tons for the quarter.

Between January and September, direct costs (C1) increased by 4.4%, reaching 214 US cents per pound. This increase is explained by higher operating costs due to efforts to recover mine development through equipment leasing; the start-up costs at Rajo Inca combined with increased mining activity at Radomiro Tomic; and a higher CPI (108.0% vs. 103.3%). These factors were partially offset by lower prices for some key inputs, such as electricity and fuel.

The net cost to cathode (C3), meanwhile, rose 6.4% to 368.5 cents of a dollar per pound, for the same reasons as C1, plus the accounting impact of the exchange rate on the variation of net liabilities denominated in pesos.

EBITDA and tax contributions rise

In terms of financial performance, EBITDA generation (earnings before interest, taxes, depreciation and amortization, and before the Reserved Copper Law) reached US$4.159 billion at the close of the third quarter, representing an increase of US$137 million, equivalent to a rise of 3.4%, compared to the same period in 2024.

This positive variation is mainly explained by the higher selling price of copper and some byproducts such as molybdenum and gold. EBITDA of US$4.159 billion equates to more than US$15 million per day during the first nine months of the year. Between January and September, contributions to the Treasury increased by 16.5%, totaling US$1.240 billion.

Structural projects are progressing

Regarding the progress of the structural projects portfolio, at the Salvador Division, the Rajo Inca project reached 93% completion. During July, the commissioning of the concentrator was completed, paving the way for the start of the plant's integrated operation, a stage in which the treatment level is gradually increased.

The desalination plant in the Northern District, being built for Codelco by the Aguas Horizonte consortium in Tocopilla, has reached 87% completion as of September, solidifying its position as one of the country's most important water infrastructure projects. The project is currently in the preparation phase for commissioning, scheduled to begin in 2026.

In the Teniente Project Portfolio, Andes Norte and Diamante are 80% and 49% complete, respectively. As of the end of September, both projects have received approval from Sernageomin and the Labor Directorate, allowing them to bring on key personnel and begin the phased return-to-work plan .

By the third quarter, the company's capital expenditures reached US$3.614 billion, US$89 million higher than the same period of the previous year, a figure that includes mine development. Financial progress reached 91% by the third quarter, while physical progress was 112% of the target set for September 2025. Codelco's investment portfolio involves 45 million man-hours per year in its development and construction, a significant scale for the country when compared to other large-scale projects such as the simultaneous construction of Lines 7, 8, and 9 of the Santiago Metro, which together employ approximately 21 million man-hours per year; or those employed by Enel Chile, which amounted to 21 million man-hours per year in 2024.

Good news in new business

The quarter brought significant progress for Codelco's new business ventures. One of the most important was the signing of the definitive agreement with Anglo American for the Joint Mining Plan in the Andina-Los Bronces mining district. This plan will unlock an additional 2.7 million tons of copper production over a 21-year period, once the necessary permits are obtained, currently expected by 2030. Additional copper production is expected to be approximately 120,000 tons per year, with unit costs roughly 15% lower compared to independent operations and minimal additional capital expenditure. This agreement is expected to generate an increase in net present value before taxes of at least US$5 billion, of which the Chilean government will receive 75%.

Also in the copper business, the "Anillo" project took a significant step forward. In May, Codelco and BHP announced an exploration agreement under which the multi-metallic mining company will be able to invest up to US$40 million to explore and study the mining potential of the concessions. As stipulated by Law 19.137, which regulates the conditions under which Codelco can partner with third parties for the development of mining projects, a prerequisite for the implementation of this joint venture is the corresponding Supreme Decree. This decree was signed by His Excellency the President of the Republic in September and is currently under review by the Comptroller General of the Republic (CGR).

Another significant development was observed in the partnership with SQM for lithium mining in the Atacama Salt Flat, with at least three milestones occurring during this period. One was the approval by the Chilean Nuclear Energy Commission (CChEN) of the lithium extraction quota for Minera Tarar SpA, a Codelco subsidiary, starting in 2031, enabling it to operate in the Atacama Salt Flat. A second milestone was reported by Corfo, with the completion of the Indigenous Consultation process for modifications to the current contract between Corfo and SQM for the period 2025-2030, and for the lease agreement and Salar Futuro project for the period 2031-2060. Additionally, the lease agreement between Corfo and Minera Tarar SpA was formalized in September and is currently under review by the Comptroller General's Office (CGR).

Projections 2025

Codelco