en.Wedoany.com Reported - In the first quarter of 2026, Chile's copper production fell to a nine-year low, with total refined copper output reaching 1,226,290 tonnes, a 6% decline compared to the same period in 2025. The contraction in output occurred against a backdrop of record-high copper prices, with London Metal Exchange copper prices repeatedly setting new records during this period.
Data from Chile's National Institute of Statistics (INE) shows that production from January to March was lower than the 1,301,772 tonnes recorded in the same period of 2025. March output was 434,314 tonnes of mine copper, the highest monthly figure this year. During the same period, the mining production index fell 3.7% year-on-year, with metallic mining down 6.5%. The first-quarter output was the lowest since 2017, when Chile produced 1,206,983 tonnes in the same period, affected by a 44-day strike at the Escondida mine.
Despite high copper prices, output still declined. The average copper price in the first quarter was $5.82 per pound, a 38% increase from $4.23 per pound in the same period of 2025. The copper price rally continued this week, with LME spot copper hitting $6.39 per pound on May 13, a daily gain of 1.62%, after four consecutive trading days of increases. According to the daily bulletin from the Chilean Copper Commission (Cochilco), the spot price that day was 639.429 cents per pound, and the three-month futures price was 641.380 cents per pound, equivalent to approximately $6.41 per pound.
Production at major mines generally declined. Output at BHP's Escondida mine fell 9% to 311,000 tonnes; attributable production at Chile's state-owned Codelco dropped 8% to 300,000 tonnes, with its own production (excluding stakes in other mines) at 272,000 tonnes, also down 8%. The El Teniente mine saw the steepest decline, with output falling 26% from 80,000 tonnes in the same period last year to 59,000 tonnes. The mine has been gradually recovering capacity following a collapse in 2025 that killed six workers.
Production at the Collahuasi mine, controlled by Anglo American (44%) and Glencore (44%), increased, rising 10% from 80,000 tonnes to 88,000 tonnes. Output at Antofagasta Minerals' Los Pelambres mine fell 5% to 70,000 tonnes.
Copper mine by-products outperformed copper itself. First-quarter gold production reached 12,660 kilograms, the highest level since 2013, a 30% increase from 9,768 kilograms in the same period of 2025; silver production was 357,468 kilograms, the best start to a year since 2016, up 22% year-on-year. The average gold price reached $4,863 per ounce, a 75% increase from the same period in 2025; the average silver price rose 166% year-on-year, from $31.272 per ounce to $83.181 per ounce.
Last year, Chile produced 5.4 million tonnes of copper, accounting for about a quarter of global output and ranking first in the world, followed by the Democratic Republic of Congo and Peru. Cochilco forecasts Chile's copper production at 5.6 million tonnes in 2026 and 5.9 million tonnes in 2027, with output not expected to surpass 6 million tonnes again until 2033.
Juan Ignacio Guzmán, CEO of GEM, attributed the production decline to increasing resource maturity, falling ore grades, and rising costs, while also pointing to investment and regulatory issues—Chile has failed to complete necessary investments at reasonable costs due to permitting processes, social and environmental requirements, and increased mining taxes over the past two decades. He noted that the royalty, as a production tax, ultimately penalized output, a consequence of previous legislation.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
