Chile, the world's largest copper producer, faces a severe output crisis. Fatal accidents, extreme weather and declining ore grades at aging mines are disrupting production. At least seven mine workers have died in the past month, and repeated storms have disrupted operations.
Production is projected to fall by approximately 7% this year. Output is expected to reach around 5 million metric tons, its lowest level in more than two decades.
Chile accounts for over 20% of global mined copper. The country's faltering supply is a key topic at LME Week in London, where producers and investors are negotiating supply contracts for 2027.
The structural decline in Chilean production is creating uncertainty in the global copper market. Demand from the energy transition and data centers is set to accelerate.