Codelco attributed a sharp drop in production at its top mine to the lingering effects of a rock collapse last year as the world’s No. 1 copper supplier strives to reverse slumping output.
“This situation was foreseen in annual planning and does not affect the committed production budget,” the state-owned company said in a written response to questions about the massive El Teniente mine.
El Teniente’s first-half production is tracking lower than the same period last year as it repairs areas of the underground operation affected by the collapse last June. It’s one of the setbacks at mines and projects that have seen Codelco’s annual output reach the lowest levels in a quarter century, with chairman Maximo Pacheco vowing last week that a recovery will begin in the second half.
The El Teniente mine saw production plunge 32% in April from a year ago, according to data compiled by Chile’s state copper commission Cochilco. That was a major factor behind Codelco’s worst monthly in at least three years, the data show.