Codelco reports lowest copper output in over 20 years after El Teniente mine accident

Codelco’s copper production plunged 25% in August to 93,400 tons — its lowest since 2003 — after a deadly accident at the El Teniente mine halted operations for more than a week.

Chile’s state-owned copper giant, Codelco, recorded its lowest monthly copper production in over twenty years after a tragic accident at its El Teniente mine disrupted operations and stalled the company’s efforts to recover from a prolonged production slump.

According to data released by the Chilean Copper Commission (Cochilco), Codelco produced 93,400 metric tons of copper in August — a 25% drop compared to the same month last year and the lowest monthly figure since Cochilco began tracking data in 2003.

Tragic accident with lasting impact

The July 31 collapse at El Teniente, considered the worst mining accident in Chile in three decades, left six workers dead and nine injured, forcing a full shutdown of operations in large sections of the mine for more than a week. Although production has resumed in unaffected areas, the company was forced to lower its annual output forecast, adding pressure to its ongoing recovery efforts.

The incident comes as Codelco pushes forward with an extensive modernization plan across its major divisions — including Chuquicamata Underground and Rajo Inca — aimed at regaining global leadership and improving efficiency amid cost and safety challenges.

Global copper supply risks intensify

Codelco’s sharp production decline — at a time when it remains the world’s largest copper producer — adds to mounting supply-side risks in the global copper market, just as the energy transition and data center expansion are driving up demand for the wiring metal.

Analysts warn that a growing structural deficit could widen further if other South American producers face disruptions, potentially fueling upward pressure on copper prices as the world accelerates electrification and infrastructure projects.

Escondida and Collahuasi performance

Elsewhere, Escondida, operated by BHP, produced 105,100 tons in August — slightly lower than in July but stable year-on-year, according to Cochilco data. Collahuasi, jointly owned by Anglo American and Glencore, reported a modest month-on-month increase, though output remained well below 2024 levels due to lower ore grades.

A defining challenge for the Chilean miner

Codelco now faces one of its most challenging moments in recent history. Operational setbacks, cost overruns, and heightened regulatory and safety scrutiny continue to weigh on performance, while the company works to meet its commitments to workers, communities, and the Chilean state.

The company reaffirmed its commitment to the victims’ families and announced the implementation of enhanced safety and geotechnical monitoring systems to prevent similar incidents and ensure operational continuity.