Codelco accelerates automation after deadly El Teniente mine collapse

Codelco is fast-tracking automation at its El Teniente copper mine after a fatal July collapse killed six workers, part of a broader push to enhance safety and offset declining ore grades amid tightening global copper supply.

Chile’s state-owned copper giant Codelco is accelerating its automation and remote operations program at the El Teniente mine following a deadly collapse in July that killed six workers, marking Chile’s worst mining accident in decades.

Accelerating automation for safety and efficiency

Codelco’s chairman Máximo Pacheco told Bloomberg News that the company is in advanced talks with technology firms, equipment suppliers, and labor unions to expand automation and remove workers from high-risk areas.

“We plan to deepen and accelerate that process,” said Pacheco. “We’re already working on it — the goal is to remove people from the front line and replace that work with remote-controlled and automated systems.”

The July 31 rock blast not only triggered a national safety review but also disrupted production and caused financial losses at El Teniente — the world’s largest underground copper mine.

Codelco’s move reflects a broader effort to contain rising production costs amid declining ore grades, which require mining larger rock volumes to sustain copper output. The company has been progressively adopting automation, particularly in haulage, drilling, and maintenance systems, to increase safety and efficiency across its operations.

Underground mining challenges

While open-pit mines have achieved significant productivity and cost improvements through autonomous trucks and digital process control, underground mines like El Teniente face greater technical and spatial constraints. Nonetheless, Codelco views automation as essential to sustaining production, reducing exposure risks, and maintaining competitiveness within Chile’s aging copper portfolio.

El Teniente, located in Chile’s central O’Higgins region, produces roughly 5% of the world’s copper, making its operational resilience critical to both national output and global supply stability.

Copper supply under pressure

The El Teniente tragedy adds to a series of global disruptions that have tightened copper supply just as demand for the red metal surges — driven by the clean energy transition, electric vehicles, and the expansion of data centers.

• In Indonesia, Freeport-McMoRan’s Grasberg mine halted operations after a fatal mudslide killed seven workers.
• In Peru, Hudbay Minerals temporarily suspended milling at its Constancia mine amid political unrest.
• Ivanhoe Mines was forced to shut down Kamoa-Kakula in May due to flooding and seismic activity.
• In Chile, Escondida, the world’s largest copper mine, saw August output dip to 105,100 tonnes, while Collahuasi remained below 2024 levels because of lower ore quality.
• Teck Resources also cut its 2025 production guidance due to ongoing challenges at Quebrada Blanca and Highland Valley Copper.

According to Benchmark Mineral Intelligence, global copper supply losses between September 2025 and late 2026 could reach 600,000 tonnes — equivalent to Collahuasi’s annual output.

Prices near record highs

Copper prices continue to climb, supported by tightening supply, a weaker US dollar, and looser monetary policy.

Goldman Sachs forecasts copper prices to trade between $10,000 and $11,000 per tonne in 2026–2027, maintaining a bullish long-term outlook amid structural deficits expected later in the decade.