BHP's Escondida Mine Resumes Operations Amid Tight Copper Market

BHP's Escondida copper mine in Chile has resumed operations after a fatal accident halted activity earlier this week. The mine, which is the world's largest copper producer, had been idle since the incident on Tuesday, just as tight inventories and strong demand put pressure on the copper market.

The worker was fatally injured while doing maintenance work at the mine, and BHP has confirmed that the company is assessing conditions for a gradual resumption of mining activities. The Escondida president, Alejandro Tapia, said in an email statement that the company will consider workforce wellbeing, operational readiness, risk controls, and applicable authority requirements before resuming operations.

The timing of the accident and subsequent shutdown puts renewed focus on the copper market's supply chain, which is experiencing a significant squeeze. Chinese inventories are near a cyclical low ahead of upcoming holidays that will temporarily interrupt restocking, while global refined consumption has been running ahead of supply. Recent data from the International Copper Study Group shows that global mine production was down 4% in July compared to June, while refined demand rose 3% over the same period.

The Escondida mine produced around 1.3 million tonnes of copper in BHP's 2026 financial year and is a critical component of the company's portfolio. The mine operator has announced plans for a new concentrator at Escondida, which could potentially lift group copper output by about 40% by fiscal 2035.