Codelco Mine Collapse Cuts Output and Exposes Global Copper Risks

Chile’s state copper company Codelco has reduced its 2025 production target after a deadly collapse at its El Teniente mine forced shutdowns.

The company now expects to produce between 1.34 and 1.37 million tonnes, down from its earlier forecast of 1.37 to 1.40 million tonnes. The July 31 accident killed six workers and halted El Teniente’s Andesita project.

Chile’s seismology center measured the event at magnitude 4.2, while the United States Geological Survey put it at 5.0. Authorities suspended nearby sections Andes Norte and Diamante for inspections, causing a full nine-day stoppage.

Codelco reported a direct loss of 33,000 tonnes of copper, equal to roughly 340 million dollars in value. El Teniente is the largest underground copper mine in the world, with more than 3,000 kilometers of tunnels.

Experts say it can lose about 10 million dollars a day when operations stop. The disaster not only caused human tragedy but also exposed how fragile supply from such a strategic site can be.

Even so, Codelco increased output in the first half of 2025. The company produced 634,000 tonnes from January to June, up 9.3 percent from a year earlier. Including its stakes in other operations, attributable production reached 689,000 tonnes, a 9.6 percent rise.

Financial results told a different story. Pre-tax profit fell 34 percent to 429 million dollars as costs rose and sales dipped. Direct production expenses climbed 6 percent to 2.16 dollars per pound.

By June, the company had spent 2.51 billion dollars of its 5.64 billion annual budget, but management said expansion projects will need review after the accident.

Regulators approved the reopening of Andes Norte and Diamante on August 24, though Andesita remains shut until further safety measures are in place.

Codelco delivers all its profits to the Chilean state, making its performance critical for national finances. Globally, copper is vital for electronics, renewable energy, and electric vehicles. That means any setback at El Teniente carries consequences far beyond Chile’s borders.

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