Santiago, April 29, 2025.- Codelco held its 2025 Shareholders' Meeting this afternoon, which for the third consecutive year was held publicly—broadcast online— , maintaining the Corporation's commitment to transparency. The meeting was attended by the Minister of Finance, Mario Marcel, and the Minister of Mining, Aurora Williams, as delegates of the President of the Republic, Gabriel Boric; while Codelco was represented by members of the Board of Directors, led by its President, Máximo Pacheco, and by its Chief Executive Officer, Rubén Alvarado.

“2024 was a year of encouraging news, marking a positive shift in both our production mix and our business model. We can affirm, without arrogance, that we are strengthening a growth strategy that will shape Codelco for the next 50 years,” Pacheco described when analyzing the 2024 management plan.

He reviewed the main indicators for the period, during which the state-owned company achieved production of 1,328,425 tons of its own copper—3,871 tons more than the previous year—which rose to 1,441,886 tons when considering the participation in subsidiaries. "Production began an upward trend that, we hope, will continue until we recover our goal of 1.7 million tons of fine copper by 2030," he emphasized.

It also highlighted the 2% decrease in costs (to 199.1 cents per pound for direct costs and 328.4 cents per pound for net cathode costs); the 30% increase in EBITDA, which closed the year at US$5.439 billion; and the 8% increase in consolidated contributions to the Treasury, which amounted to US$1.534 billion. “At Codelco, we are particularly proud to have contributed nearly US$160 billion to the State in our 53 years of existence. Thanks to high copper prices, more than 60% of this amount was generated over 20 years, from 2004 to 2023. During that same period, Codelco's contributions to the Treasury represented 7% of State revenues; they were equivalent to 16% of Chile's exports, and its cumulative investments reached 5% of total investments in the country.”

Regarding investment projects and asset purchases, he said that last year they were allocated
US$5.126 billion, almost 20% more than the previous year. "To understand what this figure means, it represents 7% of the total investment made in the country and more than half of private mining investment in Chile in 2023," he explained. He added that the future plan continues at similar levels, with averages of US$4.3 billion annually until the end of the decade.

Along these lines, in addition to the structural projects underway—Chuquicamata Underground, Cartera El Teniente, and Rajo Inca—he mentioned several other initiatives, such as Nuevo Cobre in Atacama, currently being explored in partnership with Rio Tinto; and the projects to extend the life of the Ministro Hales, Gabriela Mistral, and Radomiro Tomic mines, which are in various stages of environmental authorization.

Third stage of development

The Chairman of the Board also highlighted the 15 years since the law that provided Codelco with a new corporate governance framework was passed. During this period, there were 31 directors—and five chairmen—with diverse backgrounds and training, who contributed to making decisions without external interference. “This has allowed us to decide on complex but essential matters for Codelco's sustainability, including the closure of the Ventanas smelter; the construction of a desalination plant in Tocopilla for the Northern Operations; the purchase of mining properties; and various public-private partnerships,” he stated.

Thus, he said that successive boards have aimed to maximize the Corporation's economic, environmental, and social value and its contribution to the state in a sustainable manner, which is achieved through its own operations and also through partnerships in copper, lithium, and byproduct mining.

He explained what he considers to be a third stage in Codelco's history. The first began with the Nationalization of Copper in 1971; the second began in the 1990s, following the inauguration of the first mines designed and built by Chilean hands: Radomiro Tomic in 1997, Gabriela Mistral in 2008, and Ministro Hales in 2010; and the third is currently underway with public-private partnerships. In addition to the already well-known partnerships with Freeport McMoran in El Abra; with Kinross in Sociedad Minera Purén; and with Anglo American and Mitsui in Anglo American Sur, the most recent partnerships were with Rio Tinto to explore Nuevo Cobre, and with Teck in Quebrada Blanca, following the purchase of the 10% stake held by Enami.

He also highlighted the Memorandum of Understanding with Anglo American for a joint mining plan in the Andina-Los Bronces district, which will increase current and projected production by an additional 120,000 tons of fine copper, averaged annually, for 21 years. This, in terms of economic value, will generate at least US$5 billion between 2030 and 2051.

Lithium, the keys to why we started the process with direct negotiation

“We have made every effort to ensure maximum transparency in the agreement process with SQM. We have kept the public fully informed through the press, our digital channels, and our own social media,” Pacheco emphasized when discussing the agreement with the lithium producer for the exploitation of the Salar de Atacama. He noted that the website www.acuerdocodelcosqm.cl was launched upon announcement, where all the documents can be accessed in detail.

Additionally, he said, representatives from both companies have attended multiple events to inform and explain the agreement in all its aspects, including appearing before the National Congress on 12 occasions. "This transparency was considered important by both Codelco and SQM, convinced that this is a good deal for Chile," he argued.

He recalled that the association has been reviewed by various authorities in Belgium, Italy, Brazil, Japan, South Korea, Saudi Arabia, and the European Union, where it was approved without conditions. Meanwhile, the National Economic Prosecutor's Office in Chile approved it last week with certain information management and operational protocols. Currently, the same type of authorization is being pursued in China and, at the local level, with another series of reviews by authorities, such as that of the Chilean Nuclear Energy Commission (CChEN)—which has already authorized the increase in SQM's extraction quota until 2030, conditioned on the agreement with Codelco—while Corfo is conducting the Indigenous Consultation in parallel.

“The Codelco-SQM alliance is a business agreement that will create tremendous additional value for Chile. The State, including Codelco, could receive, in present value by December 2024, between US$21.7 billion and US$48.9 billion, considering long-term prices between US$15,000 and US$25,000 per ton of LCE (lithium carbonate equivalent), over the life of the partnership,” Pacheco explained. These amounts include items such as the lease fee received by Corfo and other payments made under contracts with that entity, income tax, the special tax on mining activities, and the profits that Codelco will receive as a shareholder.

For this reason, the executive gave four reasons for his decision to move forward with direct negotiations with SQM. First, because SQM has comparative advantages, having operated in the Salar de Atacama for almost 30 years and is one of the largest lithium producers in the world; second, because the current CORFO-SQM contracts expire at the end of 2030, and given the planned expansion of its processing capacity and the possibility that the extraction quota will be consumed before that date, the State would stop receiving resources until a new partnership is operational; third, because initiating a process with third parties would require at least five years after the end of the concession, which would imply losses for the State of at least US$11 billion, according to Corfo calculations; and finally, because with the new agreement, SQM's El Carmen plant, where lithium is produced, will be owned by the partnership between Codelco and SQM, which precisely facilitates operational continuity.

Ministers Marcel and Williams analyze results

Finance Minister Mario Marcel noted that "2024 was a year of significant decisions regarding partnerships with producers, more strategic projects, a year in which production levels began to recover after the declines of previous years, and where, of course, the issue of this new lithium business area was reflected in the negotiations and progress made. One can see in this year's management a lot of vigor in terms of opening a new stage of development for the company, with new ways of doing business."

He also referred to the copper company's capitalization policy, stating: "Regarding the profit reinvestment policy, it remains in place, and in fact, a document was just signed today authorizing the capitalization of US$72 million for 2025."

Meanwhile, the Minister of Mining, Aurora Williams, praised the company's progress in public-private partnerships, which are helping to consolidate its position in the mining industry. She also highlighted the company's work on safety. "I would particularly like to express my gratitude for the safety considerations, given that Codelco, and why not Chilean mining, suffered one of the most complex accidents on March 8, 2024, a landmark date in Radomiro Tomic, with the fatal accident of Ana Rojas Farías. Notwithstanding this, we recognize that the administration made a special effort, and during the year the frequency rate was maintained and the severity rate of accidents also decreased," she emphasized.

Codelco