Antofagasta’s copper production up 11% in strong first half

[Redator]

Chilean miner Antofagasta (LON: ANTO) reported on Wednesday an almost 11% increase in copper production for the first half of 2025, driven by stronger output from its Los Pelambres and Centinela operations.

The company, Chile’s largest copper miner after the state-owned Codelco, produced 314,900 tonnes of copper between January and June, up from 284,700 tonnes during the same period in 2024.

Second-quarter production reached 160,000 tonnes, matching analyst forecasts. “Overall a better-than-expected Q2/25, with copper production in line with our forecast and lower cash costs, implying a positive tailwind from by-products,” BMO Metals & Mining analyst Alexander Pearce said in a note.

Despite the increase, Antofagasta — which operates four copper mines in Chile — maintained its 2025 guidance at 660,000 to 700,000 tonnes.

It also reaffirmed its capital expenditure target of $3.9 billion, one of the largest sums ever earmarked by the company, as it ramps up expansions in Chile and neighbouring Peru.

“Our conviction in copper as the metal of the future remains, with a positive outlook for copper over the medium-term,” chief executive officer Iván Arriagada said. “We see continuing demand support in the form of rising uses from key strategic sectors, driven by accelerating structural trends, such as energy security and modern technologies needed for decarbonization, artificial intelligence and infrastructure, with a supply-side that is becoming increasingly constrained.”

Much of the investment is going toward key development projects, including a new concentrate pipeline at Los Pelambres and a second concentrator at Centinela. Both are advancing on schedule and within budget.

Los Pelambres. (Image courtesy of Antofagasta plc.)

Antofagasta expects Los Pelambres to deliver another 25 years of production and value creation. The mine output came to 320,000 tonnes last year, ranking just outside the top 10 producers globally.

The $4.4 billion Nueva Centinela project, approved in late 2023, will add 144,000 tonnes copper-equivalent a year to its overall production. The expansion includes upgrades to the molybdenum plant and development of the Esperanza Sur pit, where it is deploying autonomous trucks. 

Antofagasta noted the approval of the Environmental Impact Assessment (EIA) for its Zaldívar mine in the second quarter of the year. This will allow production continue through 2051.

Aiming for the Top 10

Antofagasta, majority-owned by Chile’s Luksic family, one of the country’s wealthiest, has set its sights on becoming one of the world’s top ten copper producer. 

The miner has made several strategic moves in pursuit of that goal, including its 2023 acquisition of a 19% stake in Peru’s Minera Buenaventura. 

The miner also has a presence in the US, through its subsidiary Twin Metals. The unit has been trying for over a decade to develop an underground copper-nickel mine and processing facility near Minnesota’s Birch Lake.

The project was dealt a major blow in 2023, when the Biden administration cancelled Twin Metals’ two long-standing mineral leases and imposed a 20-year mining moratorium in the area..Antofagasta has since been fighting to get its licences restored.

Last week, CEO Arriagada said he saw “an opportunity” to advance the long-stalled project, following President Donald Trump’s move to impose a 50% import tariff on copper. The move is seen by some as a signal of increased support for domestic mining.

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