Codelco, Chile’s state-owned copper producer, anticipates a 50% surge in sales for the first quarter of 2025 compared to the same period in 2024, driven largely by increased demand from the United States. According to CEO Rubén Alvarado, if current projections hold, the company will sell approximately 50,000 more tons of copper than in the first quarter of the previous year.
The demand from U.S. companies has been on the rise, partly due to tariffs imposed on metals by former President Donald Trump. These restrictions have led major U.S. buyers to seek alternative suppliers, benefitting Codelco. “We are not moving copper shipments away from traditional markets but rather adjusting our strategy to meet the growing needs of our American customers,” Alvarado stated.
Codelco remains committed to long-term commercial relationships, ensuring that sales to the U.S. do not come at the expense of other key markets. Alvarado reassured that the company is managing its supply chain to meet the needs of all its clients while maintaining strategic balance.
Copper Production and Market Outlook
For 2025, Codelco expects a slight increase in copper production, with estimates ranging between 1.37 and 1.4 million metric tons—consistent with recent years. In 2024, production stood at 1.328 million metric tons, representing a marginal 0.3% increase over the previous year. Alvarado attributes this stabilization to the resolution of challenges in underground operations and improvements at the Ministro Hales division.
Meanwhile, Chile’s mining sector continues to be a key contributor to the national economy, with state-owned mining revenues exceeding $1.5 billion in 2024.
Copper Prices and Economic Outlook
Higher U.S. demand is expected to drive copper prices up, though Alejandro Sanhueza, Codelco’s Finance Director, remains cautious about potential volatility. “We do not anticipate a dramatic price increase, but given the market’s tight supply, fundamentals suggest a strong and stable demand.”
While short-term price fluctuations are possible due to macroeconomic conditions in the U.S. and China, Sanhueza emphasized that long-term fundamentals remain strong. “Our main focus is on cost control and productivity to ensure resilience in varying market conditions.”
Lithium Exploration in the Atacama Desert
In addition to copper, Codelco is advancing efforts to explore lithium in the Atacama salt flats. The company recently submitted a list of priority areas for study, and negotiations are expected to advance this year. If agreements with the government materialize, a partnership with lithium producer SQM for joint exploration could be formalized by year-end.
With both copper and lithium being critical minerals for global energy transitions, Codelco is positioning itself as a key supplier for the industries driving the future of clean energy and advanced manufacturing.
Source: EL MERCURIO
