Codelco is the world’s largest copper producer, how much does it contribute to the government?
Codelco is the largest copper producer in the world, but how much revenue does it contribute to the Chilean government?
In that country, copper is mined by a combination of state and private companies.
The state copper company, Codelco, is the world’s largest copper producer and the largest company in Chile.
According to the Chilean government, Codelco contributed $ 1.3 billion to government revenue in 2020, while private mining contributed $ 1.7 billion in 2020.
Under Chilean law, Codelco’s net profits are subject to a special 40.0% tax, in addition to the corporate income tax generally applicable to national companies and paid by its private sector competitors.
Also, as a wholly state-owned company, Codelco contributes all its net income to the central government budget through profit transfers.
Codelco
In 2018, 2019 and 2020, government revenues from copper totaled $ 1.7 billion, $ 3.7 billion, and $ 1.3 billion, respectively.
Chile has large reserves of metallic and non-metallic mineral resources and is the world’s largest copper producer.
In 2020, Chile recorded an estimated 200 million metric tons of copper reserves, which represented 23% of world reserves, and produced 5.7 billion metric tons of copper.
Likewise, in Chile there are large amounts of iodine, coal, gold, silver, nitrate, iron ore and molybdenum.
As a result, the mining sector is a significant contributor to Chile’s export sector and GDP.
While non-manufactured mining exports are recorded in the mining sector, the mining production process is included in the manufacturing sector.
Earlier, in the 1990s, the mining sector grew driven by increased investment, including the opening of new large mines.
For 2019 and 2020, this sector represented 9.4 and 12.5% of GDP, respectively, reflecting lower copper prices.
Mining products in 2019 and 2020 represented approximately 52.2 and 56.8%, respectively, of Chile’s total exports for a total of approximately 36.7 billion in 2019 and 41.8 billion dollars in 2020.
