Chile Signs Strategic Minerals Pact as Codelco Output Falls 11%
Four Andean governments signed a non-binding pact on lithium and copper in Santiago. Hours later Codelco reported first-half output down 11% and profit sharply higher. The post Chile Signs Strategic Minerals Pact as Codelco Output Falls 11% appeared first on The Rio Times .
On 28 August 2026, Chile, Argentina, Bolivia and Peru signed a strategic minerals declaration in Santiago. The four mining states pledged to cooperate on lithium and copper. This was the first ministerial meeting on strategic minerals and regional integration. The event took place at the Hall of Honor at Santiago's municipal government building.
Daniel Mas, Chile’s minister of economy and mining, represented the host country. Luis Lucero from Argentina and Guillermo Shinno from Peru signed alongside him. Bolivia was represented by its vice minister of mining policy, regulation and oversight.
Chile leads in copper production and Argentina and Bolivia are significant lithium producers. Bolivia also holds substantial undisturbed brine resources. The strategic minerals declaration is not legally binding but sets an intention. It does not create quotas, joint pricing, shared budgets or delivery obligations. Instead, it calls for information exchange, convergent positions in international platforms, regulatory best practices, and technical cooperation on geology, inspection, mine closure, innovation, and workforce training.
The declaration does not address tax, royalties or permitting, which each country still manages independently. These remain the key factors determining where mining capital ultimately flows. Daniel Mas, the Chilean minister, predicted global demand for these minerals could rise by 400-600% within a decade. This surge is linked to the energy transition and AI's increasing power needs.
Codelco, Chile's state-owned copper giant, reported an 11% drop in first-half 2026 production, falling to 564,000 tonnes of fine copper. This was down from 634,000 tonnes the previous year. Despite the decline, pre-tax profit surged 68% to US$4.648 billion, and Chilean treasury transfers rose 15% to US$933 million. The company's El Teniente mine, a key copper producer, saw a 27% decrease in output due to a fatal accident in July 2025 and subsequent maintenance restrictions.
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