Codelco's El Teniente Mine Hits Two-Year Setback Over Seismic Risks

Codelco's flagship El Teniente mine in Chile has been hit with another setback as the company suspends development of the Andes Norte section due to seismic risks. The two-year pause follows new geological studies that show greater seismic risks than previously understood, prompting Codelco to protect its workers. This decision comes after six months of analysis identified an emerging seismic phenomenon associated with the greater depth of the project.

The project is adjacent to areas where a rockburst in July 2025 killed six workers and halted production. The collapse remains under investigation. Codelco's copper output at El Teniente has been declining, falling by 27% year-over-year in the first five months of the year.

Experts warn that this disruption adds to concerns over global copper supply as miners push deeper underground, increasing exposure to geotechnical risks. The physical copper market is also tightening, with low on-warrant inventories and dwindling visible Chinese stocks contributing to a potential near-term squeeze on the London Metal Exchange.