Chile's Copper Output Drops as Miner Strikes Loom

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

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Summary

Chile's copper production in August reached 369,500 tonnes, compared with 423,600 tonnes in the same month last year. Severe weather and lower ore grades at key assets contributed to the decline, while labor unions at Escondida and Centinela could soon begin strikes.

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A Rough Market

Chile's National Institute of Statistics (INE) said in its monthly production report that the nation's copper output in August dropped to 369,500 tonnes from 423,600 tonnes recorded during the same month last year. INE attributed the 12.8% decline to severe weather conditions in July, which affected operations and extended into August, as well as lower ore grades at key mining operations.

Among the mines affected by the severe weather in July were Caserones, Los Pelambres, Candelaria and Carmen de Andacollo. Lundin, the owner of Caserones, said operations were affected by two power outages that disrupted operations in late July and mid-August. Antofagasta said operations at Los Pelambres shut down due to severe weather and power outages from July 18 until July 23.

Industrial Info Resources offers more information on these mines in its Global Market Intelligence (GMI) Metals & Minerals Plant Database, where readers can find detailed profiles of the Caserones, Los Pelambres, Candelaria and Carmen de Andacollo mines.

In August, Lundin Mining decreased its 2026 copper production guidance from 310,000-335,000 tonnes, to 300,000-325,000 tonnes, while Antofagasta reduced its forecasted volumes from 650,000-700,000 tonnes to 625,000-655,000 tonnes as a result of the shutdowns.

INE's data shows cumulative copper production of 3.27 million tonnes from January to August, a 7.8% decline compared with the same period last year.

These decreases weigh on Chile's yearly copper output, which has already faced operational setbacks and labor strikes earlier this year.

Strikes Roil Industry

In August, Codelco temporarily suspended the development of certain project construction activities at its El Teniente Mine due to risks arising from seismic activity. Production at El Teniente has remained constrained since July 31, 2025, when an earthquake led to the deaths of six workers.

According to Cochilco's data, El Teniente produced 148,900 tonnes between January and July, a 26.5% decrease from the same period last year.

Besides operational setbacks, labor unions went on strike at the Manto Verde Mine between January and February, impacting operations. Readers can consult detailed profiles of the El Teniente and Manto Verdemines.

Meanwhile, in September, labor unions at the Escondida Mine, the world's biggest copper mine, and the Centinela Mine have rejected their companies' contract offers and have voted in favor of strike action, raising the risks of work stoppages. Chile's law allows for a negotiation period between the unions and the companies, mediated by the government, before a strike can take place.

Readers can consult detailed profiles of the Escondida and Centinela mines.

However, if these strikes proceed and disrupt operations, they would place further pressure on already declining Chilean copper production.

These output setbacks come as copper prices remain near record-high levels, driven by tight copper concentrate supply and expectations of long-term demand growth from electrification, power grids and renewables.

Key Takeaways

• Chile recorded copper output of 369,500 tonnes in August, a 12.8% year-on-year drop.
• From January to August, Chile's copper production was 3.27 million tonnes, a 7.8% decline compared with the same period last year.
• Potential strikes by labor unions at Escondida and Centinela could cause further production disruptions.

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