Chile's Copper Output Hits 19-Year Low Amid Aging Mines

Chile's copper production has hit a 19-year low in the second quarter of this year, according to data from the country's statistics bureau. The country, which accounts for a quarter of global mined copper, produced 1.27 million metric tons of copper in the April-June period, representing a 7.7% decline from the same quarter last year.

The drop is attributed to aging mines struggling to lift output despite billions of dollars in investment. Major producers such as Codelco and BHP Group have been investing heavily to counter declining ore grades and increasingly complex operations. However, their efforts seem to be yielding little results so far.

Bloomberg Intelligence analyst Grant Sporre believes that copper mine supply could stay tight in 2026, supporting a constructive price view due to accident-related disruptions and slow recoveries at major mines offsetting new output. Chile's mining industry is not alone in facing these challenges, as producers worldwide grapple with aging ore bodies and challenging new projects.

Chile's second quarter production did experience a 3.6% improvement from the first quarter, but this seasonal rebound is typical for the country's mining industry. The third quarter may be impacted by disruptions due to heavy storms that lashed the central region in July.