Codelco posts worst monthly copper output in decades on accident

Codelco registered the lowest month of copper output in more that two decades after a mine collapse disrupted the Chilean firm’s efforts to recover from a protracted production slump.

The state behemoth produced 93,400 metric tons in August, according to data released Thursday by Chilean copper agency Cochilco. That’s down 25% from the same month last year and the lowest since the agency’s data set began in 2003.

A July 31 accident at El Teniente mine killed six people, injured nine and halted activities for more than a week, prompting the company to trim its annual output projection. While work has resumed in areas unaffected by the collapse, the Chilean industry’s worst accident in three decades is undermining Codelco’s status as the world’s biggest copper producer.

That adds to mounting supply-side risk in the global copper market just as the energy transition and building of more data centers start to push up demand for the wiring metal.

Escondida, operated by BHP Group, produced 105,100 tons in August, lower than July though little changed from a year ago, according to Cochilco data on the world’s biggest copper mine.

Meanwhile, the Collahuasi mine — in which Anglo American Plc and Glencore Plc each have a 44% stake — posted a slight increase from July, but remained well down on last year’s production levels due to a period of lower quality ore.

(By James Attwood)