Chilean government announces US$975 million recapitalization package for Codelco

Chilean Treasury Minister Rodrigo Valdés announced on 1 December 2016 the government would inject US$975 million of public funds into Codelco, the state-owned mining company. Of this amount, US$475 million correspond to a special allocation provided by the executive to mitigate the effects of the Copper Reservation Law, which dictates that 10 percent of Codelco's copper sales must be given to the Chilean Armed Forces in 2016 and 2017 (La Nación). The remaining US$500 million was granted as part of the Law on Codelco Capitalization, which stipulated that the government is to support Codelco with US$3 billion in the period 2014-2018. In addition, this law was extended until 2019. It is worth noting that Codelco had requested US$800 million in government funds in 2016, so the executive's allocation exceeds the company's requested amount (La Tercera).