Codelco fast-tracks automation after deadly mine collapse

[Redator]

Chile’s state-owned copper giant Codelco to fast-track automation at its El Teniente mine after a deadly collapse killed six workers, in what became Chile’s worst mining accident in decades.

The miner is in talks with technology firms, equipment suppliers, and unions to accelerate efforts to remove workers from high-risk areas and expand the use of remote-controlled and automated systems, chairman Máximo Pacheco told Bloomberg News.

“We plan to deepen and accelerate that process,” Pacheco said. “We’re already working on it — the goal is to remove people from the front line and replace that work with remote-controlled and automated systems.”

The July 31 rock blast not only triggered a safety reckoning but also disrupted operations and caused financial losses at El Teniente, the world’s largest underground copper mine. The push toward automation is part of Codelco’s broader strategy to reduce rising costs as ore grades decline, forcing miners to extract more rock to produce the same volume of metal.

While automation in open-pit mines has delivered significant cost savings through autonomous trucks and process systems, underground operations like El Teniente pose greater technical challenges and offer more limited gains. Still, Codelco sees increased automation as critical to maintaining output while improving safety.

Global supply squeezed

The collapse at El Teniente adds to a series of setbacks squeezing global copper supply just as demand surges, fuelled by the clean energy transition and rapid growth in data centres.

In Indonesia, Freeport-McMoRan’s (NYSE: FCX) Grasberg mine halted operations after a fatal mudslide killed seven workers. In Peru, Hudbay Minerals suspended a mill at its Constancia mine due to political unrest. Seismic activity and flooding forced Ivanhoe Mines to temporarily shut down operations at its Kakula mine in May, leading to the withdrawal of its 2025 production forecast.

Production at Chile’s Escondida mine — the world’s largest — dipped in August to 105,100 tonnes, slightly below July levels. Collahuasi, a joint venture between Anglo American (LON: AAL) and Glencore (LON: GLEN), posted a small monthly gain but remains well below last year’s output due to lower ore quality. Teck Resources (TSX: TECK.A, TECK.B)(NYSE: TECK) also slashed its 2025 copper production guidance after persistent challenges at its Quebrada Blanca and Highland Valley Copper operations.

Benchmark Mineral Intelligence estimates global supply losses between September 8 and the end of 2026 could total nearly 600,000 tonnes. This is roughly equal to the projected 2026 output of Collahuasi, the world’s seventh-largest copper mine.

Copper prices are approaching record highs, lifted by tightening supply, a weaker US dollar, and looser monetary policy. 

Goldman Sachs expects prices to range between $10,000 and $11,000 per tonne in 2026–2027 amid a short-term surplus, and maintains a bullish long-term view on the metal.