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

[Portable conveyor belt machinery at a copper mine. Heavy and mobile machinery in a quarry to transform stone into construction material]
Pavel Volkov/iStock via Getty Images

Codelco’s copper production fell to its weakest monthly level in more than two decades after a deadly mine collapse deepened the Chilean state miner’s long-running struggles to reverse declining output, Bloomberg News reported Thursday.

The company produced 93,400 metric tons in August, down 25% from a year earlier and the lowest figure since Chile’s copper commission Cochilco began tracking data in 2003.

The sharp drop followed a July 31 accident at the El Teniente mine that killed six workers, injured nine others, and forced a shutdown lasting more than a week. Although some operations have since resumed in unaffected areas, the incident (the country’s most serious mining disaster in 30 years) already led Codelco to cut its annual production guidance, further challenging its position as the world’s largest copper producer.

The disruption adds to tightening global supply concerns just as demand for copper climbs, driven by the clean energy transition and the rapid buildout of data centers requiring vast amounts of electrical wiring.

Other major Chilean mines posted mixed results in August. BHP’s (BHP [https://seekingalpha.com/symbol/BHP]) Escondida, the world’s biggest copper operation, produced 105,100 tons, slightly below July’s output but roughly in line with the same month last year. Collahuasi, jointly owned by Anglo American (OTCQX:AAUKF [https://seekingalpha.com/symbol/AAUKF]) (OTCQX:NGLOY [https://seekingalpha.com/symbol/NGLOY]) and Glencore (OTCPK:GLCNF [https://seekingalpha.com/symbol/GLCNF]) (OTCPK:GLNCY [https://seekingalpha.com/symbol/GLNCY]), recorded a modest month-over-month increase, though volumes remain significantly lower than last year due to lower ore grades.

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