Chile copper mining costs highest in Americas, threatening new investment, report says

Chile’s copper mining industry faces significantly higher operational costs than regional competitors, potentially limiting its ability to attract new investment despite strong geological resources, according to a report released by the Chilean Copper Commission (Cochilco) on Monday.

The study analyzed 67 greenfield copper projects across the Americas and found Chile exhibits the highest capital intensity for medium-capacity processing plants and the second-highest for large-scale operations.

Key findings:

• Chile’s grinding energy costs range from $2.4 to $3 per metric ton processed, the highest in the region, driven by electricity tariffs of $11.1 per kilowatt-hour.
• The country’s labor costs for extraction reach $0.90 per ton in medium plants and $1.08 per ton in large facilities, exceeding all regional competitors.
• Lower ore grades in Chilean deposits require processing larger mineral volumes, increasing energy consumption and operational expenses.
• Chile’s electricity tariff is 31.3% higher than Peru’s and 35.2% above the United States’, reflecting dependence on thermal generation and high transmission costs.
• The labor shortage affects an estimated 6,000 technical professionals annually, according to employment data cited in the report.

(By Fabian Cambero and Kylie Madry)