Codelco Suspends El Teniente Expansion, Raising Global Copper Supply Concerns

Published: Aug 07, 2026 14:52 (GMT+8)

Codelco's decision to suspend development of the Andes Norte section at its El Teniente mine has intensified concerns over the outlook for global copper supply, as the world's largest underground copper operation continues to face operational challenges. According to the company, the expansion has been paused following detailed geological assessments that identified previously unrecognized seismic risks associated with mining at greater depths. The suspension is expected to remain in place while further technical studies are completed.

The Andes Norte project forms part of El Teniente's long-term production strategy and is located near areas affected by the fatal rockburst that occurred in 2025. The latest delay comes as Codelco works to recover production after recent operational disruptions, with output from El Teniente remaining below previous levels. The company has also acknowledged that its earlier objective of restoring annual copper production to 1.7 million tonnes by 2030 is no longer achievable under current conditions.

The setback adds to growing concerns over the availability of future copper supply at a time when the market is already facing declining ore grades, project delays and strong demand from electrification and digital infrastructure. Extended disruptions at one of the world's most important copper mines could further tighten the concentrate market, particularly if supply growth from other major producers fails to offset lost production.

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