Copper and Lithium Production
The metals of the moment
Despite the challenges of recent years and new competitors rising on the global stage, Chile is still a world leader in the production of copper and lithium, maintaining the top spot and second place, respectively, in terms of production figures. Chile is responsible for 28% of the world’s copper supply and 53% of the total mining investment in Latin America, as state-led and private companies are expected to invest US$83 billion in the country between 2025 and 2033. “Chile has the potential to continue being a global leader as the increased demand for copper is something we are all working to address. Because of the importance of mining in Chile and the general support of the industry, there has been a lot of growth in the industries that support mining,” said Joshua Olmsted, president and COO, Freeport-McMoRan Americas.
With Argentina, Peru and Ecuador beginning to contribute increasing amounts to global copper production, South America has the potential to become a mining superpower, spearheaded by its most southerly country.
In 2023, Codelco, Chile’s state-operated mining giant, recorded its lowest production figures in 25 years. Since then, all efforts have been directed at restoring the company’s former strength. In this vein, Codelco acquired Enami’s 10% stake in Quebrada Blanca for US$520 million, aiming at increasing production at the plant and fostering collaboration between Teck and Codelco.
Furthermore, in February 2025, alongside Anglo American, Codelco announced a historic MoU to collaborate on the neighboring Andina and Los Bronces projects. According to Codelco, this will become the fourth-largest mining district in the world, possessing about 8 million t of resources between the two deposits. The collaboration will help both companies avoid many of the problems other mining companies in Chile are facing, such as access to infrastructure and declining ore grades, and increase production by 120,000 t/y.
One of Codelco’s flagship projects and the largest underground copper mine in the world, El Teniente, celebrated its 120th birthday in 2025. As a way to extract more copper from the historic mine, Amerigo Resources, through its Minera Valle Central (MVC) operation, is transforming El Teniente’s fresh and historic tailings into copper concentrates.
As ore grades keep declining, this model may become more attractive for an increasing number of Chile’s copper producers. “Every producer faces the challenge of maintaining or increasing production. To do so, the traditional path has been to look for more ore to mine, which is very capital intensive on one hand, and more so given that ore grades are getting lower and lower. The option of looking for additional copper not in a new mining sector, or a deeper mine level, but in your tailings, makes a lot of sense,” explained Aurora Davidson, CEO of Amerigo Resources.
Many of the announced investments are looking to expand mine life and take existing mines further underground, as seen with Collahuasi transitioning from an open pit mine to an underground one.
A major project that was completed in 2024 was the expansion of Teck Resources’ Quebrada Blanca operation. Dale Webb, VP operations, Latin America, commented: “Teck’s copper production increased 50% from the year prior, up to 446,000 t/y, and this was largely driven by our operations in Chile. At Quebrada Blanca, as ramp-up work nears completion, our focus moving forward is on further optimization and debottlenecking, which will potentially increase throughput by a further 15 to 25%.”
This was a major undertaking for the company, paving the way for many of the investments that will be seen in Chile in the coming years, and helping Teck Resources set a new company record for annual copper production.
Australian mining company BHP accounts for 27% of Chile’s total copper production and has announced plans for between US$10.7 and US$14.7 billion of investment over the next decade, most of which is concentrated on one of the largest copper mines in the world, Escondida. In 2024, the mine produced 1.25 million t, with a 2025 production guidance of between 1.18 and 1.3 million t of copper. The company is expecting output from its mines in Chile to drop by 300,000 t/y by 2030, which explains the need for such a large investment.
Mining companies are using different methods of investment in their Chilean properties to offset declining ore grades. Lundin Mining is leveraging its property packages to unlock further value in its projects. “Caserones has 60,000 hectares of exploration properties, and we are launching the most extensive exploration program there since its discovery. Although there have been changes to Chile’s mining laws, we still view the country as a stable mining jurisdiction,” outlined Juan Andrés Morel, the company’s vice president of operations.
Last year, Caserones achieved 125,000 t of production, with Lundin’s other property, Candelaria, not meeting its production guidelines due to lower-than-expected ore grades in the latter part of the year. Lundin Mining increased its ownership in the Caserones mine by 19% in an attempt to further aid in meeting production guidance in years to come. Morel added: “This is a clear demonstration of our commitment not only to Chile but also to South America and copper. Our long-term strategy is to strengthen our position as a leading copper-focused company, and many of the transformational decisions we made in 2024 were aligned with that objective.”
Lower grades are something Glencore is familiar with in Chile at Lomas Bayas. During 2025, Compañía Minera Lomas Bayas celebrated 2 million hours without lost time accidents and managed a 13.1% increase in copper production to reach 74,000 t for the year. Andrés Souper, general manager of Glencore Chile, said: “Lomas Bayas operates with an ore grade of approximately 0.27%, which means that over its more than 20 years of operation, it has had to constantly evolve to remain competitive.”
The mine won the 2024 SONAMI National Mining Award, showcasing how mines can thrive even when operating at lower grades. Glencore’s complex in Altonorte also achieved impressive production figures of 1.1 million t/y of copper concentrate.
Another multinational mining company with a record year of production in 2024 was Capstone Copper, which ramped up operations at both Mantoverde and Mantos Blancos. The Mantoverde Development Project drove most of the 12% growth in consolidated copper production at the mine, adding a 32,000 t/y sulfide concentrator and a tailings storage facility. Feasibility studies were submitted for Mantoverde Optimized, a low-cost project that will deliver around 20,000 t/y of copper and extend the mine life by 25 years. Chairman John Mackenzie believes there are several reasons why large mining companies are looking at extensions rather than greenfield projects: “Existing mines are seeing significant grade declines, and new deposits face increasing complexities. In the long term, higher prices might incentivize additional copper mines, but it is not just economics that restricts new developments. Environmental, social, and infrastructural factors also play a significant role. Whereas it used to take 2-5 years to bring a new deposit to production, today it can take 8-12 years or more,” he said.
Amid these challenges, Capstone Copper is positive that it will thrive and reach its forecasted production of between 220,000 and 255,000 t/y of copper. “Firstly, we will be focused on operational execution across our portfolio through the implementation of our Asset Integrity Program across all our sites, delivering strong operational performance and benchmarking to drive production and cost efficiencies,” highlighted Capstone’s CEO, Cashel Meagher.
Expansions have also been announced by Antofagasta Minerals, which announced that US$3.5 billion of its total US$7.57 billion investment will come into effect in 2025. These upgrades include a US$2 billion desalination plant at Los Pelambres, a US$1.2 billion Zaldívar mine extension to extend operations to 2051, and an investment of US$4.4 billion in Nueva Centinela, adding 144,000 t/y of copper equivalent as well as upgrading the molybdenum plant.
“Our strategy centers on investing in growth so we are well positioned to meet the forecast demand increases from electrification, growth in data centers, energy security, and the energy transition. Our growth projects at Centinela and Los Pelambres will significantly boost production,” highlighted Iván Arriagada, CEO of Antofagasta Minerals.
Furthermore, in an exception to the rule, ore grades at Los Pelambres are expected to increase in 2026.
US$7.5 billion will be invested by Freeport-McMoRan in the El Abra operation, looking to introduce a new concentrator plant, water pipelines, and upgraded desalination facilities. “We discovered a significant sulfide resource there about a decade ago and have spent time truly trying to scope the size of the resource. We are now looking to add milling operations and are in the process of defining the specifics of this. We aim to take El Abra from about 100,000 t/y to closer to 350,000 t/y,” explained Joshua Olmsted of Freeport Americas.
In December, the company entered the environmental assessment stage for a US$741 million expansion Sulfolix Leaching Pile Modification, the first step in the process that could take up to eight years due to permitting timelines.
“There has been a lot of growth in the industries that support mining in Chile, and these companies will have new opportunities because of increased demand.”
Joshua Olmsted, President and COO, Freeport-McMoRan Americas
Lithium
As the world’s second-largest producer of lithium, producers in Chile are looking to capitalize on the increased focus of the government following the release of the National Lithium Strategy.
During the 1990s, Chile possessed 90% of the known global lithium reserves, a figure that has dropped to 40% in the years since, while Chile’s share of worldwide production has dropped from 50% to 25%. This has been driven by the faster pace of discoveries in other parts of the world, such as Africa, spurred on by the increasing global importance of critical minerals and the corresponding rise in price. Exemplifying the heightened attractiveness of lithium was Rio Tinto’s entry into the market through the purchase of Arcadium Lithium for US$6.7 billion, giving Rio Tinto ownership of the Rincón project in Argentina. The move positions Rio Tinto as the world’s third-largest lithium producer and involves it in one of the most technologically advanced lithium markets in the world, where direct lithium extraction (DLE) technologies are commonplace.
Both public and private organizations will have to work and even collaborate to maintain Chile’s leadership in critical mineral production. New players, experienced producers, and exploration companies alike will all be needed
Aiding Chile in its global levels of lithium production is Albemarle, which achieved record production levels at both its Salar de Atacama and La Negra sites. Whilst some may view the likes of Rio Tinto entering the South American lithium market as a threat, Roland Haemmerli, VP operations and country manager of Albemarle, welcomes such activity. “We fully support the expansion of the lithium industry as there is room and a need for multiple players to meet the demands of the energy transition and electric mobility. That said, our leadership comes from experience, global scale, and the strategic positioning of our assets,” he discussed.
A company looking to capitalize on increased major mining companies in the lithium space is Summit Nanotech, whose DLE technologies are aiding a more sustainable and efficient way of extracting the critical mineral. “Independent third-party validation confirms that our technology produces lithium faster than competitors while using the same amount of water and energy, making our process much more efficient than both competitive technologies and traditional methods. On a per-ton basis, we use significantly less water, energy, and reagents, all while producing a higher-quality product,” emphasized the company’s CEO, Amanda Hall.
With DLE technologies enhancing the project economics of lithium mining, it seems like only a matter of time before the market returns a favorable evaluation of the critical mineral once again. Cochilco estimates lithium investments between 2023 and 2026 to total US$2.1 billion, and with more Special Lithium Operation Contracts (CEOLs) announced as part of the National Lithium Strategy, Chile is set to retain and reinforce its position at the top of the regional lithium league table, despite fierce competition entering the race.
Article header image courtesy of Caserones