Chile’s state-owned copper producer Codelco says its restructuring plan may not be ready until the end of 2026, later than the previously expected October release.
The review aims to address years of stagnant production and rising costs. Reuters reports four sources familiar with the discussions say potential measures include reducing the workforce by 5–20%, although no firm decision has been made.
Codelco says it is assessing its strategic direction and developing a recovery plan under CEO Jorge Gómez, who joined in July. The company describes the review as standard following a leadership change and says it is too early to speculate about resulting decisions.
According to Reuters’ sources, contractors could bear the largest share of any reductions. They account for about 80% of Codelco’s workforce of nearly 77,000 people.
Other options could include selling or closing less profitable operations or delaying projects.
The Copper Workers Federation says it has not been formally informed of proposed job cuts and argues staffing already closely reflects operational needs.
Chairman Bernardo Fontaine said in August that copper output would likely remain around 1.3 million tonnes (Mt) annually in coming years, below earlier ambitions to reach 1.7Mt by the decade’s end.
Codelco is wholly owned by the Chilean Government and operates copper mines across Chile.
Write to France Pinzon at Mining.com.au
Images: Codelco
