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The Treasury improves Codelco's financial position by capitalising profits from 2025
CL🏛️ PoliticsLean Progressive13 days ago

The Treasury improves Codelco's financial position by capitalising profits from 2025

The Chilean government under President José Antonio Kast has decided not to withdraw Codelco’s 2025 profits, which amounted to $2.422 million, primarily accounting gains, allowing them to be reinvested into the state-owned copper mining company. President Kast emphasized the importance of preserving Codelco as a national symbol, while Minister of Mining Daniel Mas described the move as a 'direct injection' of funds. This marks the first time in over 50 years that the State has authorized retaining 100% of annual surplus earnings. The proposal was initiated by Codelco’s board chairman, Bernardo Fontaine, who secured support from Finance Minister Jorge Quiroz and other officials. While much of the profit comes from Codelco’s joint venture with SQM, Novandino Litio, the measure reduces financial pressure on Codelco without adding new resources. Fontaine explained that this approach avoids forcing Codelco to take on significant debt to meet potential government demands.

The government of President José Antonio Kast has decided for the first time in more than 50 years not to withdraw the profits of state-owned copper company Codelco during 2025. The decision, announced during the Day of the Miner and at an event held within Codelco’s Andean division offices, marks a shift in how the state manages its stake in the company. Instead of transferring the $2.423 million in earnings to the national treasury, the government will retain the entire amount and reinvest it directly into Codelco. President Kast emphasized the symbolic importance of the move, calling Codelco a national symbol that must be preserved and nurtured. “We have to recover that national pride that is Codelco,” he stated, highlighting the emotional connection many Chileans feel toward the company. The decision was supported by the Ministry of Mining and Economy, with Biminister Daniel Mas delivering the announcement. He described the measure as unprecedented, noting that it represents the first time in over five decades that the state has authorized retaining 100% of annual surplus funds. According to Mas, the retention of profits will result in a direct injection of approximately $1.422 million into the company. This sum, he explained, will be used to strengthen Codelco’s financial position and support its recovery plan led by Director Bernardo Fontaine. The move aims to provide the company with greater financial capacity to manage risks and avoid further debt accumulation. “Our goal is to ensure the company can meet production challenges without increasing its liabilities,” Mas added. Fontaine, who heads Codelco’s board, welcomed the decision as a long-awaited opportunity. He called the capitalization of profits a “deeply felt desire” among Codelco employees and stressed that the move signals renewed confidence in the company’s ability to recover. “What Chile is doing today is betting strongly on Codelco,” he said. However, Fontaine also acknowledged the current difficulties facing the company, describing the situation as complex and the results as weak. He argued that transparency and transformation are essential for overcoming these challenges. The decision also carries implications for Chile’s tax system. Minister of Finance Jorge Quiroz noted that the retained profits will not contribute to the national treasury, which he described as having been somewhat greedy in previous years regarding profit withdrawals. “The money that Codelco has sent to the Treasury has come at the cost of increased debt,” Quiroz remarked. He emphasized that the current approach reflects a commitment to honesty and practicality in managing the company’s finances. The proposal to retain profits originated from Codelco’s board, particularly under Fontaine’s leadership. According to insiders familiar with the discussions, Fontaine first suggested the idea during his initial meeting with President Kast on June 3. Subsequently, he secured support from both the Ministry of Finance and the Ministry of Mining through several meetings. The request was formally submitted to the Ministry of Finance, which approved the capitalization of up to $2.422 million in profits, primarily derived from Codelco’s joint venture with SQM, Novandino Litio. While much of the proposed capitalization comes from accounting adjustments related to Novandino Litio, Fontaine clarified that the move effectively reduces the need for Codelco to take on additional debt. “This allows us to treat the funds as capital rather than as a liability to be repaid to the state,” he explained. In private discussions, officials at Codelco noted that convincing the Ministry of Finance to accept the capitalization required careful negotiation, especially given the ministry’s strict fiscal oversight. Looking ahead, the focus will be on strategic investments. Codelco is currently reviewing each project and refining its budgeting process, with nearly 170 initiatives under consideration. A comprehensive strategic plan is set to be presented in the final quarter of the year, outlining key investment decisions. Experts such as Professor Cristián Quinzio, former legal head of Codelco, view the decision positively, emphasizing that allowing the state to retain profits strengthens Codelco’s financial independence.

5 reports

La Tercera logoLa TerceraIndependent🔒ProgressiveFactual 90Objective 8513 days ago
For the first time in more than 50 years: government decides not to withdraw Codelco's profits during 2025

The Chilean government, under President José Antonio Kast, has decided not to reinstate profits from state copper company Codelco for 2025, allowing the company to retain 100% of its earnings amounting to approximately US$1.422 billion. This decision was made during a special event marking the Day of the Miner, held at Codelco’s Andean Division headquarters. The move is part of a broader strategy to support Codelco’s recovery plan led by its board chairman, Bernardo Fontaine. The government emphasized the importance of financial discipline, transparency, and strategic investment to ensure the company’s sustainability without increasing debt. President Kast highlighted the need to restore national pride associated with Codelco, while the minister of Mining and Economy, Daniel Mas, described the decision as unprecedented in the company’s over 50-year history.

Bias read (Progressive): The article frames the decision as a significant and positive step for Codelco, emphasizing national pride and the government’s strong support for the company. While the government is portrayed as acting in the interest of national sovereignty and economic stability, the tone suggests a progressive,

Why factuality (90): The article presents official government decisions regarding Codelco's profits and includes quotes from high-level officials. It provides specific figures and contextualizes the decision within the company's history and current economic strategy, showing alignment with reported government actions.

Why objectivity (85): The language is formal and objective, focusing on reporting the government's position without introducing personal opinion. While there is some emotive language around national pride, it is framed within official statements.

BioBioChile logoBioBioChileIndependentProgressiveFactual 85Objective 8021 days ago
Criteria: 74% refuse to privatize Codelco and almost half prefer to keep it 100% state-owned

An opinion poll conducted by BioBioChile indicates that 74% of respondents reject the privatization of Codelco, a state-owned copper mining company in Chile. Nearly half of the participants prefer maintaining Codelco as fully state-controlled. The survey highlights strong public sentiment against privatization, emphasizing support for national control over strategic industries.

Bias read (Progressive): The article frames the public opposition to privatization as a preference for state control, aligning with progressive values that prioritize national sovereignty over private sector involvement. The emphasis on 'casi la mitad' (nearly half) supporting full state ownership suggests a narrative favor

Why factuality (85): The article reports on a poll regarding public opinion on privatizing Codelco, stating that 74% reject privatization and nearly half prefer full state control. This aligns with typical reporting on such polls, though no primary source is available. The numbers are presented as reported by the source

Why objectivity (80): The tone remains neutral, presenting the poll results without overt emotional language or editorializing. However, the focus on the rejection of privatization may subtly imply a preference for state control, which could be seen as slightly biased depending on the reader's perspective.

La Tercera logoLa TerceraIndependent🔒CenterFactual 85Objective 7513 days ago
The Treasury improves Codelco's financial position by capitalising profits from 2025

The Chilean government under President José Antonio Kast has decided not to withdraw Codelco’s 2025 profits, which amounted to $2.422 million, primarily accounting gains, allowing them to be reinvested into the state-owned copper mining company. President Kast emphasized the importance of preserving Codelco as a national symbol, while Minister of Mining Daniel Mas described the move as a 'direct injection' of funds. This marks the first time in over 50 years that the State has authorized retaining 100% of annual surplus earnings. The proposal was initiated by Codelco’s board chairman, Bernardo Fontaine, who secured support from Finance Minister Jorge Quiroz and other officials. While much of the profit comes from Codelco’s joint venture with SQM, Novandino Litio, the measure reduces financial pressure on Codelco without adding new resources. Fontaine explained that this approach avoids forcing Codelco to take on significant debt to meet potential government demands.

Bias read (Center): The article presents the decision by the government and Codelco leadership to retain profits without taking a clear ideological stance. It includes quotes from both the president and officials, providing balanced perspectives on the economic and symbolic significance of the decision. There is no明显的偏

Why factuality (85): The article provides specific details such as the amount of $2.422 million, the involvement of President Kast, Minister Daniel Mas, and Bernardo Fontaine. It also clarifies that much of the profit comes from Novandino Litio, a joint venture between Codelco and SQM. These details align with what woul

Why objectivity (75): The article uses emotionally charged language like 'recuperar ese orgullo nacional' and 'cuidarlo, hay que atesorarlo,' which suggests a nationalistic tone. While it presents multiple perspectives including statements from officials, it leans toward supporting the government’s decision without prese

BioBioChile logoBioBioChileIndependentCenterFactual 80Objective 8521 days ago
Government considers selling state stake in healthcare companies to raise funds

The Chilean government is considering selling its stake in state-owned healthcare companies as a means to generate additional revenue. This proposal comes amid financial pressures and the need to address budget shortfalls. The plan would involve reducing the state's ownership in these entities, potentially leading to private sector involvement. While the initiative aims to improve fiscal stability, it has sparked debate over the implications for public healthcare services and patient access.

Bias read (Center): The article presents the government's consideration of selling state equity in healthcare companies as a fiscal measure without overtly endorsing or criticizing the policy. It does not emphasize ideological positions or take a clear stance on the potential impact of privatization, maintaining a cent

Why factuality (80): The article discusses the potential sale of state participation in health companies to raise funds. While this is unrelated to the primary source document, it does not contradict it either. The article provides factual information about possible government actions.

Why objectivity (85): The article maintains a neutral tone, presenting the situation as a potential policy consideration without expressing clear support or opposition. It avoids overly emotional or biased language.

La Tercera logoLa TerceraIndependent🔒ProgressiveFactual 75Objective 6018 days ago
Copper Workers Federation: All governments have been in the trend of only taking the silver out of Codelco

The Federación de Trabajadores del Cobre (FTC), representing 26 unions at state-owned copper company Codelco, criticized the Chilean government and management for prioritizing profit over investment in infrastructure and modernization. The FTC argues that while private companies typically reinvest up to 40% of their surplus, Codelco only reinvests 8%, highlighting structural inefficiencies. They provided examples such as outdated machinery in certain divisions compared to others. The FTC disputes claims by Codelco President Bernardo Fontaine that the company’s mining law is not restrictive, arguing that Codelco faces significantly higher operational challenges due to lower royalty rates. Additionally, they discussed the temporary shutdown of the Andes Norte project due to seismic risks, which could last at least two years, and assured workers that employment conditions would remain unchanged.

Bias read (Progressive): The article frames the criticism of Codelco's management and government policies through the lens of labor rights and economic fairness, emphasizing the disparity between public and private sector practices. It highlights the demands of union representatives and criticizes corporate priorities, with

Why factuality (75): The article reports statements from the Federación de Trabajadores del Cobre (FTC) regarding Codelco's investment practices and compares them to private companies. It includes direct quotes from FTC officials like Aldo Binimelliz and references to comments by Codelco president Bernardo Fontaine. Whi

Why objectivity (60): The article presents the FTC's perspective on Codelco's operations and uses emotionally charged language such as 'todos los gobiernos han estado en la tendencia de solamente sacar la plata' which implies criticism of government policies. The tone leans toward supporting the union's position while pr

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