Cochilco: 'Cash Cost' of Copper Mining in Chile Fell in 2025

Written by Amir Richani for IIR News Intelligence

Summary

Chile's copper mining cash cost fell to 180.8 cents per pound in 2025 as higher byproduct revenues and lower treatment and refining charges offset rising operational costs. Cochilco warned that higher energy and logistics costs linked to the conflict in the Middle East could generate higher costs in 2026.

Cost Drops 5.7 Cents Per Pound

The cash cost of Chile's large-scale copper mining operations was 180.8 cents per pound in 2025, falling 5.7 cents from the previous year, according to a new report from the Chilean Copper Commission (Cochilco). The study included 21 Chilean mines, which account for 94.4% of the country's production.

The decline came despite higher mine-site costs, as stronger byproduct credits and lower treatment and refining charges compensated for operational pressures. According to Industrial Info Resources data, there are 265 copper-related projects amounting to investments of US$69.70 billion in Chile.

Byproduct credits are revenues obtained from metals produced and sold alongside copper, mainly gold, silver and molybdenum. These revenues are deducted from the cost of producing copper.

In 2025, gold prices increased by 44% year on year, while silver rose 42% and molybdenum 4%.

Lower treatment and refining charges also helped to lower mining costs. Contract charges fell from US$80 per tonne or 8 cents per pound in 2024 to US$21 per tonne or 2.1 cents per pound in 2025, amid lower availability of copper concentrates in the market.

These favorable factors offset a 20.3 cents-per-pound increase linked to operational management, lower outputs and higher electricity and energy costs as well as a 6.9 cents-per-pound increase from adverse financial market factors.

Output from the 21 mining operations fell by 77,300 tonnes of fine copper between 2024 and 2025, a 1.5% drop. Chile's total copper production in 2025 amounted to 5.415 million tonnes, down 1.6% compared to 2024.

Cochilco's report highlighted that 11 operations, accounting for 64% of the sample's production, reduced their cash costs, while costs increased at 10 operations, accounting for the remaining 36% of the nation's volumes.

Cochilco highlighted that the sector's cost competitiveness continues to be supported mainly by larger operations, while smaller mines remain more vulnerable to rising costs.

The commission also reported that its net cost indicator increased slightly by 2.3 cents per pound to 294.7 cents per pound. Unlike cash cost, the net cost indicator includes non-operational expenses, corporate costs, financial expenses, depreciation and amortization. Cochilco uses this indicator to compare costs against the price of copper.

However, Cochilco said that the cost outlook could change this year. The conflict in the Middle East could increase diesel, transportation, electricity, freight, insurance, sulfuric acid, materials and imported inflation costs if disruptions in energy markets and logistics routes remain.

Key Takeaways

• Chile's copper mining operations reduced their cash costs to 180.8 cents in 2025.
• Operational, energy-related, and lower output costs were offset by higher byproduct credits.
• Costs in 2026 may increase given higher prices of energy, freight, insurance, sulfuric acid, materials and more.

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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).