Chile’s state-owned Codelco recently announced the extension of an $800 million contract to ensure the continued operation of the Gabriela Mistral copper mine until 2055, underscoring the company’s strategic focus on long-term production stability. According to the latest data released Monday by Chile’s copper commission Cochilco, Codelco—the world’s largest copper producer—recorded a significant 17% year-on-year production increase in June, reaching 120,200 metric tons. Notably, this growth stands in stark contrast to the 33% output decline at BHP’s Escondida mine, the world’s largest copper operation, which saw production drop to 76,400 metric tons in June.
Codelco has made critical progress in restoring capacity. Just one week after Chile’s worst mining accident in decades, the company resumed operations in eight underground sections and the smelter at its El Teniente mine. As the world’s largest underground copper mine, El Teniente contributed 356,000 tons of copper last year, and its gradual reopening will provide crucial support for Codelco as it strives to recover from years of sluggish output. Four sections remain closed, including a strategically important new mining area vital to future production, pending final investigation results.
Recent investigations reveal that the mine’s damage was far worse than initially estimated. Chile’s prosecutor’s office confirmed last week that 3,700 meters (about 12,000 feet) of tunnels were affected—five times Codelco’s original assessment. Meanwhile, management changes are underway, with the company announcing Monday that El Teniente’s director, Andrés Music, has stepped down, temporarily replaced by operations manager Claudio Sougarret. These developments highlight Codelco’s efforts to boost production while actively addressing safety and operational challenges in its mining operations.
