Chile Copper Output Recovers in July

Chile’s copper production plunged 15.1% year-on-year to 387.87 metric tons in September 2026, marking its steepest decline since March 2017 and the third consecutive monthly fall. Finance Minister Jorge Quiroz warned that output could fall by 8% to 9% this year, worsening his previous forecast of a 7% contraction and putting the world’s largest copper producer on track for its weakest annual production in more than two decades. The decline reflects fatal mining accidents, extreme weather, operational disruptions and years of underinvestment, which have left aging mines struggling with deteriorating ore grades. The supply shortfall is adding to tightening conditions in the global copper market, where demand is rising due to investment in data centers and power infrastructure. Although mining investment projects are increasing, their contribution to output will take time to materialize.

Chile’s copper production fell 12.8% year-on-year to 369.5 metric tons in August 2026, reaching its lowest level of output since February of 2011 and extending a 9.4% decline in the previous month. The decline reflects severe winter weather and port disruptions that affected production operations during the month, following storms that had already hit several northern mines in July. The sharp drop in output from Chile, the world’s largest copper producer, added to concerns over the physical market that has showed signs of tightness.

Chile’s copper production fell 9.4% year-on-year to 403,424 metric tons in July 2026, reversing a 5.1% increase in June. The decline was attributed to unfavorable weather conditions in northern Chile that disrupted production, as well as maintenance work at major mining operations. The sharp drop in output from Chile, the world’s largest copper producer, added to concerns over tightening global copper supplies.