Eldorado Produces First Copper-Gold Concentrate at Skouries, Grid Connection Expected in September

Cobre Limited announced on September 9 that its Sierra Atacama operation in Chile has signed ore-purchase agreements with two third-party copper oxide miners in the Antofagasta region, with deliveries expected to ramp up from Q4 2026. The agreements are expected to supply approximately 50,000–75,000 tonnes of oxide ore per month grading 1.0–1.5% total copper, adding around 300 tonnes per month of copper cathode production.​ The additional production will be processed through Sierra Atacama’s existing SX-EW plant, which has installed copper cathode capacity of approximately 20,000 tonnes per year and is currently operating below nameplate capacity. As the purchased ore does not require Cobre to incur its own mining and development costs, the company said incremental costs will primarily comprise the ore purchase price and variable processing costs, including acid, power and reagents. Higher throughput is also expected to spread the plant’s fixed costs over a larger production base.​ The approximately 300 tonnes per month of additional cathode will be incremental to Cobre’s previously announced production targets, which remain unchanged. The company is continuing to stabilise underground production while preparing to transition toward a larger open-pit operation from 2027. Cobre said negotiations with additional regional ore suppliers are also underway, potentially providing further feed for the under-utilised SX-EW facility.​ The agreements represent a near-term increase in copper cathode supply from Sierra Atacama without requiring additional mining development or new processing capacity. At the initial expected rate, the third-party feed could contribute approximately 3,600 tonnes of additional cathode on an annualised basis. More importantly, it should raise utilisation of the existing SX-EW plant ahead of Cobre’s planned transition to expanded open-pit production in 2027. Further ore-supply agreements would provide additional upside to plant utilisation and cathode output.

Copper prices extended their record-breaking rally on September 8, with benchmark three-month copper on the London Metal Exchange rising to a fresh record of around $14,728/mt. Copper prices have continued to strengthen amid concerns over constrained mine supply, tight availability of metal outside the US and uncertainty surrounding potential US trade restrictions on refined copper. The rally was also reflected in the US market, where COMEX copper futures reached record levels around $6.78/lb. Copper prices in both London and New York have been supported by a combination of tightening supply expectations and tariff uncertainty, which has encouraged large volumes of refined copper to move toward the US market. According to foreign media reports citing preliminary data from the International Copper Study Group (ICSG), global copper mine production declined 1.1% year on year in H1 2026, with weaker production reported across several major producing countries. The decline has reinforced concerns over raw-material availability at a time when the copper concentrate market is already exceptionally tight. At the same time, uncertainty surrounding potential US tariffs on refined copper continues to reshape international trade flows. Large volumes of copper have accumulated in the US as traders and consumers position themselves ahead of possible policy changes, while inventories available in other major consuming regions have remained comparatively constrained. This geographical imbalance has contributed to tighter physical conditions outside the US even as global exchange inventories remain elevated. Copper’s latest record reflects a combination of weaker mine supply, tight concentrate availability and distortions in refined-copper trade flows rather than a single supply event. The decline in global mine production during H1 has added to concerns that concentrate availability could remain constrained, particularly as smelters continue to face historically weak treatment-charge conditions. However, the current market tightness is not evenly distributed. Large volumes of refined copper have accumulated in the US, while availability in other markets remains tighter. As a result, the location and accessibility of inventories have become increasingly important factors influencing copper prices. In the near term, copper prices are likely to remain sensitive to further mine disruptions, changes in US trade policy and movements in exchange inventories. Continued weakness in mine production or further tightening in physical availability outside the US could provide additional support to prices, while a reversal of US-bound copper flows could ease some of the current geographical imbalance.