Chile's Copper Output Slumps to Near Two-Decade Low

Chile's copper output in Q2 was its weakest in nearly 20 years. This shortfall is primarily due to supply chain issues within the mines themselves.

Codelco and BHP Group are among the major producers investing heavily to counter these pressures, but Chile has yet to see its copper sector grow again.

Grant Sporre, a Bloomberg Intelligence analyst, noted that 'Copper mine supply could stay tight in 2026, supporting a constructive price view.' He added, 'Unplanned outages and slow restarts at major mines are offsetting newly added supply.'

The country's data also shows how slowly copper supply can respond. New mines take years of planning and construction to come online.

Many of Chile's large copper operations were developed decades ago, making it challenging for miners to process lower-grade ore while managing more waste and unplanned stoppages.