Chile’s state-owned copper company, Codelco, reported its lowest copper production in over two decades after a mine collapse suspended the recovery from a prolonged period of production weakness.
Based on data published yesterday by Chilean copper agency Cochilco, Codelco produced 93,400 tonnes (t) in August, down 25% from the same month in the previous year.
The loss of production is attributed to an accident at the El Teniente mine on July 31.
The earthquake-induced accident occurred near the Andesita section of the mine’s vast underground tunnel system.
It resulted in six fatalities, nine injuries and temporary closure for over a week, leading the company to adjust its yearly output forecast.
Codelco estimated the production loss at around 33,000t resulting from the collapse.
Although output has resumed in areas unaffected by the incident, the disaster, the worst in Chile’s mining sector in three decades, has tarnished Codelco’s image as the world’s largest copper producer, Bloomberg reports.
It is a period when supply-side danger is increasing in the international copper market with increased demand for the metal from the energy transition and the construction of data centres.
Conversely, BHP Group’s Escondida produced 105,100t in August. Although lower than July, it changed little from last year, Cochilco figures show.
Escondida remains the world’s biggest copper mine. The Collahuasi mine, which is owned by Anglo American and Glencore, however, had a small rise in production from July. Nonetheless, it is below last year because of a period of poor ore.
