The strategic repositioning centers on lithium diversification through partnerships at the Salar de Atacama, particularly the Novandino Litio joint venture with SQM. Pacheco will continue as chairman of that entity after leaving Codelco’s main board. The Salar Futuro project environmental impact assessment is scheduled for June submission with estimated investment reaching $2 billion and planned use of direct lithium extraction technology to reduce environmental footprint. The diversification responds to accelerating global demand for battery minerals tied to energy transition requirements.
On financial structure, Pacheco defended Codelco’s debt position as reflecting state-level decisions on capitalization, reinvestment rates and fiscal dividend withdrawals rather than management choices. He emphasized that the company accesses financing at competitive rates and maintains strong bond valuations among international investors. Production data showed divisional copper output fell 1.8 percent year-on-year to 91,000 tonnes in January 2026, down 47 percent from December levels that Pacheco attributed to standard year-end inventory clearing practices. He projected 2026 total production would exceed 2025 volumes despite lower ore grades and operational challenges including a recent El Teniente incident.
The board chairman highlighted the BOOT model applied to the new Tocopilla desalination plant operated by Aguas Horizonte, a Marubeni-Transelec partnership, as a framework for future infrastructure development that preserves capital expenditure focus on core mining activities. Pacheco described his successor’s required attributes as patience, perseverance and long-term orientation to navigate the transition from project completion to stabilized production growth.
This article was curated and published as part of our South American energy market coverage.
