Chile registered its weakest second quarter of copper production in data going back to 2007, underscoring the challenge facing the world’s biggest supplier as aging mines struggle to lift output despite billions of dollars of investment.
Production fell 7.7% from the same quarter last year to 1.27 million metric tons, despite a recovery in June, according to calculations based on monthly data published Friday by the statistics bureau. It’s the lowest for an April-June period in a series going back 19 years.
The country that accounts for a quarter of the world’s mined copper is struggling to reignite growth in the industry with major producers including Codelco and BHP Group investing heavily to counter declining ore grades and increasingly complex operations.
While Chile’s second quarter improved 3.6% from the first, that seasonal rebound is typical for Chile’s mining industry. Looking ahead to the third quarter, July production may have been impacted by disruptions due to heavy storms lashing the central region.
Chile’s struggles reflect a broader theme across the global industry, where producers are grappling with aging ore bodies and challenging new projects, reinforcing concerns that supply will struggle to meet new demand from electrification, artificial intelligence and power infrastructure. Prices are trading near record highs partly as a result.
“Copper mine supply could stay tight in 2026, supporting a constructive price view” as accident-related disruptions and slow recoveries at major mines offset new output, said Bloomberg Intelligence analyst Grant Sporre.
(By James Attwood)
