Codelco's El Teniente faces two-year delay, adding to copper supply fears
2026-08-06 10:36:50 [Print]
A two-year suspension of development at the Andes Norte section of Codelco's flagship El Teniente mine could significantly compound production challenges at the world's largest underground copper operation, further tightening an already strained global copper market, according to a union leader.
The expansion pause follows new geological studies that revealed greater seismic risks than previously understood. Chile's state-owned copper giant stated that the decision was made to protect workers after six months of analysis identified an emerging seismic phenomenon linked to the greater depth of the Andes Norte project.
The project sits adjacent to the Andesita and Teniente 7 mining areas, where a rockburst on July 31, 2025, killed six workers and halted production across parts of El Teniente. The collapse-equivalent to a magnitude-4.2 earthquake-remains under criminal, regulatory and technical investigation.
The latest setback comes as Codelco is already grappling with restoring production after output fell to a 25-year low. El Teniente's copper production was approximately 27% lower year-on-year in the first five months of the year, while the company's new chairman has acknowledged that its goal of returning to 1.7 million tonnes of annual copper production by 2030 is no longer achievable.
The disruption intensifies growing concerns over global copper supply. As miners worldwide push deeper underground due to the depletion of ageing operations, they are increasingly exposed to geotechnical risks similar to those emerging at El Teniente---a century-old mine with more than 4,500 kilometres of tunnels beneath the Andes.
The expansion pause follows new geological studies that revealed greater seismic risks than previously understood. Chile's state-owned copper giant stated that the decision was made to protect workers after six months of analysis identified an emerging seismic phenomenon linked to the greater depth of the Andes Norte project.
The project sits adjacent to the Andesita and Teniente 7 mining areas, where a rockburst on July 31, 2025, killed six workers and halted production across parts of El Teniente. The collapse-equivalent to a magnitude-4.2 earthquake-remains under criminal, regulatory and technical investigation.
The latest setback comes as Codelco is already grappling with restoring production after output fell to a 25-year low. El Teniente's copper production was approximately 27% lower year-on-year in the first five months of the year, while the company's new chairman has acknowledged that its goal of returning to 1.7 million tonnes of annual copper production by 2030 is no longer achievable.
The disruption intensifies growing concerns over global copper supply. As miners worldwide push deeper underground due to the depletion of ageing operations, they are increasingly exposed to geotechnical risks similar to those emerging at El Teniente---a century-old mine with more than 4,500 kilometres of tunnels beneath the Andes.
Copper Conc. 25%min CIF China TC
Unit:USD/mt
China refined copper producers' sales to production ratio statistics by province by month
Unit: %
