Codelco sending more copper to US after tariff threat

Chile’s Codelco, the world’s largest copper producer, has been redirecting some of its spot sales to the United States, CEO Ruben Alvarado said on Friday.

US President Donald Trump in February ordered a probe into potential new tariffs on copper imports in an effort to rebuild US production, a move that appeared to prompt a rush for copper.

Alvarado also said he did not see any reason for copper to be subject to a sanction or tariffs, and anticipated strong long-term fundamentals for copper demand beyond short-term swings.

“We are committing to the needs of our clients in the United States, we are redirecting part of our spot sales,” Alvarado said in a press conference to discuss Codelco’s 2024 results.

Codelco reported a swing into the black for its 2024 earnings, posting a pre-tax profit of $790 million compared to a loss of $757 million the previous year.

The state-owned miner said output totaled 1.328 million metric tons, a touch above the 1.325 million tons it reported for 2023 and within its target range.

Codelco said it began in August to post higher production figures than in the year before.

“In 2024 we succeeded in leaving the production valley,” it said in a presentation, adding it had lowered costs and resolved some long-standing issues at some of its key complexes.

The company also said production is expected to start at the Andesita and Andes Norte divisions this year.

Codelco said it expects 2025 output to reach between 1.37 million and 1.4 million tons.

The copper miner reiterated its expectation of beginning a joint venture with lithium producer SQM this year, and said it would choose a partner for the Maricunga lithium project in the second quarter.

(By Fabian Cambero, Daina Beth Solomon and Sarah Morland; Editing by Kylie Madry, Deepa Babington and Alistair Bell)