Chile’s Antofagasta Boosts Copper Output, Cuts Costs, and Eyes U.S. Comeback

Chilean mining company Antofagasta, owned by the powerful Luksic Group, increased its copper output by 11% in the first half of 2025, reaching 314,900 metric tons.

This came from stronger production at its main processing plants, especially at Los Pelambres and Centinela. The company kept its full-year target steady, aiming for 660,000 to 700,000 tons—the same range as last year’s final output of 664,000 tons.

At the same time, mining costs dropped sharply. Antofagasta reported net cash costs of $1.32 per pound of copper, down 32% from a year ago.

The company credits higher plant efficiency and stable operations for this improvement. Lower costs allow it to stay competitive as global demand for copper continues to rise.

Copper is essential for key industries like electric vehicles, power grids, and digital infrastructure. As countries ramp up energy transition goals, that demand will increase further.

Antofagasta’s ability to produce more copper at lower costs puts it in a strong position to benefit. To keep that edge, the miner is investing heavily. Its capital spending in 2025 will total $3.9 billion, up from $2.7 billion in 2024.

Most of that investment is going into expanding capacity at the Centinela site. The upgrades should help lift future output and maintain cost control as ore grades shift and operating challenges grow.

Chile supplies about 25% of the world’s copper. Antofagasta runs four mines there and plays a key role in that national output. Its operations rely nearly fully on renewable energy and use non-freshwater sources at major locations to limit environmental impact.

Meanwhile, the company is still trying to move forward with its long-stalled Twin Metals project in Minnesota. The U.S. government paused the project due to environmental concerns.

Still, Antofagasta now sees a possible opening after new moves to favor U.S. mining. A recent proposal for a 50% tariff on copper imports, backed by former President Trump, has revived hope.

If the U.S. restricts foreign copper further, projects like Twin Metals could become more valuable and politically viable. Antofagasta’s results show a company managing global risks with stable production and tighter cost control.

While copper demand rises, securing steady supply remains a global concern. By keeping investments high at home and pushing cautiously abroad, Antofagasta balances short-term gains with longer-term strategy. In today’s race for vital minerals, that matters.

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