Chile Floods Hit Major Copper Mines, Boosting Supply Risks Amid Record Prices
Copper supply risks have increased due to severe weather in Chile, which has damaged power infrastructure and transportation networks at major copper mines.
Chile accounts for around 24% of global mined copper production, according to the US Geological Survey (USGS), making any disruption significant for international commodity markets.
The storms, which occurred in July, killed at least 13 people, damaged or destroyed over 1,100 homes, and prompted the Chilean government to declare a state of emergency in affected regions.
Lundin Mining suspended production at its Caserones mine due to electricity supply issues, while Antofagasta plc temporarily halted operations at Los Pelambres mine for safety inspections. Codelco, the world's largest copper mining company, also suspended operations at parts of its Distrito Norte division.
The government has introduced emergency measures to restore mining activity, including restoring transport links and electrical infrastructure. Over 600 mining operations experienced disruptions caused by flooding, damaged roads or electricity outages.