Chile Starts 2026 with a Slower Copper Output and Mining Uncertainty

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

In January, Chile produced 409,900 tonnes of copper, a decline from the previous year.

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Weak Start to Year

In January, Chile produced 409,900 tonnes of copper, a 3% year-on-year decline. One of the largest drops came from Codelco's El Teniente mine, following the July 2025 incident that killed six workers and disrupted operations at the mine.

This weak start poses a challenge for Chile as it aims to achieve a higher output target this year.

Continuing the trend, Codelco, the world's largest copper producer, posted a January copper output of 100,200 tonnes, a 2.4% yearly drop. El Teniente mine recorded the largest loss, with output of 18,100 tonnes, 29.5% below January 2025 levels.

However, several mines, Chuquicamata, Radomiro Tomic, Ministro Hales, Salvador, and Andina, partially offset these losses by delivering higher year-on-year volumes for the national company.

BHP's Escondida mine, the world's largest copper mine, also recorded a year-on-year production drop of 4% to close January with volumes of 105,000 tonnes. Similarly, BHP's Spence mine saw a substantial decrease, with volumes of 16,400 tonnes, 33.3% less than last year.

For 2026, Cochilco forecasted Chile's copper production at 5.61 million tonnes, higher than the 5.41 million tonnes produced last year.

Looking further ahead, the mining authority foresees two production peaks over the next decade: 5.97 million tons in 2027 and 6.06 million tons in 2033, as part of the country's long-term outlook.

New Government, New Structure

The mining industry is now watching Chile's new government combine the Ministry of Mining and the Ministry of Economy. Supporters frame this as a drive to align growth and permit policy, while critics warn it could weaken oversight of the nation's most vital industry.

In March, right-wing politician Antonio Kast took office and appointed Daniel Mas to lead the merged ministry. Mas, an agronomist with three decades in various productive sectors, brings experience from construction, agriculture, and financial services but not in mining itself.

Since his appointment, Mas' initial actions included visiting mining companies in the Antofagasta region, where companies such as BHP, Codelco, Anglo American, Antofagasta Minerals and Teck participated in discussions.

Key discussion points included the mining sector's priorities and challenges, policies to attract more investment, and the role in maintaining Chile as the world's largest copper producer.

Mas emphasized rapid permitting, stating, "We are working to convert 90 permits into signed authorizations, I would say, in the next six months," underscoring the urgency for administrative improvements.

With roughly a quarter of the world's yearly copper production, any changes to Chile's mining sector could affect global markets.

Finally, Cochilco expects US$104.5 billion in mining investments between 2025 and 2034, with copper accounting for 89.8% of the total.

Key Takeaways

• Chile's January copper output was 409,900 tonnes, a 3% yearly drop.
• Codelco's copper production was down 2.4% year on year.
• The new government has merged the ministries of Mines and Economy.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).