Chile's Copper Mine Output Decreased 5.8% in Q1

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

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Summary

Chile's Q1 copper output fell 5.8% to 1.21 million tonnes, with the largest declines at El Teniente, El Abra, Spence and Escondida. Copper prices hit record highs amid tight production.

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Output Decline

Cochilco, the Chilean Copper Commission, reported the country's copper production at 1.216 million tonnes in Q1, down 5.8% compared to the same period last year. In March, the latest available data, Chile produced 431,200 tonnes of copper, 9% below the same month in 2025.

Industrial Info Resources data show more than 260 copper-related projects in Chile, worth US$69.73 billion.

Codelco

Codelco, the state-owned company and the world's largest copper producer, was a key contributor to the decline, producing 299,600 tonnes between January and March, 7.5% lower than the same period last year.

Codelco has been mainly impacted by the production decline at the El Teniente mine, which recorded a production of 59,100 tonnes of copper in Q1, compared to 80,100 tonnes during the same period last year.

The mine was shut down for several days in 2025 following a collapse that killed six workers. Since then, the company has conducted an audit on the event and sacked executives after the audit. Reuters also revealed that the mine's production is expected to remain hit for five years.

El Abra mine, 49% owned by Codelco, saw Q1 output fall 19.5% to 22,100 tonnes. In March, Freeport-McMoran, the majority owner, submitted an environmental impact study to extend the mine's life by 40 years.

BHP Mines

The largest drop in terms of volumes came from the Escondida mine, the world's largest copper mine. Between January and March, the asset recorded an output of 311,600 tonnes, a 9.3% drop compared to the same period last year. The biggest decrease was in March, when production reached 101,600 tonnes, compared to the 120,600 tonnes registered the same month in 2025.

In March, BHP, the owner of the Escondida mine, submitted the environmental assessment for the construction of a new concentrator at the mine to help offset declining production and keep volumes at the current level. The project is expected to cost between US$4.4 billion and US$5.9 billion, and it will add a copper capacity of 220,000-260,000 tonnes per year with a potential starup date for 2031 to 2032.

At the Spence mine, also operated by BHP, copper production fell sharply during Q1 2026, declining 34.4% year on year to 44,600 tonnes. The drop was mainly linked to lower ore grades and challenges associated with managing ore complexity.

Forecast

For 2026, Cochilco expects Chile to produce 5.6 million tonnes of copper. The agency raised its 2026 global price forecast from US$4.55 to US$4.95 per pound due to restricted supply from production shutdowns.

"Cochilco forecasts higher copper prices for this year and the next, primarily because the market will continue to face a shortage of the metal, as supply remains unstable, marked by recurring episodes of tightness, particularly regarding copper concentrates. This situation has driven up premiums for immediate delivery, resulting in increased volatility," said Chile's former minister of Mining, Aurora Williams, in February during the presentation of the forecast.

However, on May 12, copper prices reached their record-high at US$6.29 per pound, driven by a slower recovery from the Grasberg mine in Indonesia, lower production during Q1 in Chile, and a shortage of sulfuric acid due to disruptions in the Middle East, according to Cochilco.

Key takeaways

• Chile's copper output in Q1 was 1.21 million tonnes, a 5.8% annual drop.
• El Teniente, El Abra, Spence, and Escondida mines led the decline.
• Copper prices reached their highest on record at US$6.29 per pound.

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