Chile’s state-owned copper giant Codelco is accelerating automation at its El Teniente mine following a deadly collapse in July that killed six workers — the worst mining accident in the country in decades.
The tragedy has prompted the company to intensify efforts to remove personnel from high-risk areas. Chairman Máximo Pacheco told Bloomberg News that Codelco is collaborating with technology firms, equipment suppliers, and unions to expand the use of remote-controlled and automated systems.
“We plan to deepen and accelerate that process,” Pacheco said. “The goal is to remove people from the front line and replace that work with remote-controlled and automated systems.”
Modernizing the World’s Largest Underground Copper Mine
El Teniente, located in Chile’s Andes Mountains, is the world’s largest underground copper mine and ranks sixth globally by reserves. The July 31 rock blast not only disrupted operations but also highlighted the growing risks miners face as ore grades decline, forcing more rock to be extracted for the same volume of copper.
Automation has already delivered significant cost savings in open-pit mines through driverless trucks and AI-driven processes. Underground operations like El Teniente present greater technical challenges, but Codelco views automation as critical to both safety and productivity.
Global Copper Supply Under Pressure
The El Teniente collapse adds to a series of disruptions tightening global copper supply just as demand surges from clean energy projects and data center growth.
- In Indonesia, Freeport-McMoRan’s Grasberg mine halted operations after a fatal mudslide killed seven workers.
- In Peru, Hudbay Minerals suspended its Constancia mill due to political unrest.
- Seismic activity and flooding forced Ivanhoe Mines to temporarily shut down operations at its Kamoa-Kakula mine.
Chile’s other copper operations are also affected:
- Escondida, the world’s largest mine, produced 105,100 tonnes in August, slightly below July.
- Collahuasi, a joint venture between Anglo American and Glencore, remains below last year’s output due to lower ore quality.
- Teck Resources has lowered its 2025 production guidance after challenges at Quebrada Blanca and Highland Valley.
Benchmark Mineral Intelligence estimates global supply losses between September 2024 and the end of 2026 could total nearly 600,000 tonnes — roughly equal to Collahuasi’s projected 2026 output.
Copper Prices Climb
Tightening supply, a weaker US dollar, and looser monetary policy have pushed copper prices toward record highs. Goldman Sachs expects prices between $10,000 and $11,000 per tonne in 2026–2027 and maintains a bullish long-term outlook, driven by demand for renewable energy and digital infrastructure.
For Codelco, the immediate focus is clear: protect workers, stabilize production, and accelerate the transition to a safer, automated mining future.
