Codelco Halts Expansion Work at Top Mine on New Seismic Risk
(Bloomberg) -- Codelco is suspending work on a project designed to extend the life of its biggest copper mine in Chile after identifying a new
(Bloomberg) -- Codelco is suspending work on a project designed to extend the life of its biggest copper mine in Chile after identifying a new source of seismic risk a year after a rock burst killed six workers. The state-owned behemoth is halting the Andes Norte project at its El Teniente mine, it said in a statement Tuesday. The measure is based on data collected over the past six months, which point to a seismic phenomenon distinct from the underground risks the operation has historically managed.
While the suspension was described as temporary and precautionary and won’t affect current production, it underscores the challenge facing Codelco as it seeks to reverse years of declining output at aging mines. Andes Norte is one of three major projects designed to unlock deeper ore bodies at El Teniente and sustain production over the long term. “This confirms the view that returning to higher production levels will be very difficult,” said Juan Carlos Guajardo, founder of Chilean consultancy Plusmining. “Codelco must now focus on regaining operational efficiency and carefully reviewing its projects.
It should only embark on a new phase once that foundation is in place.” Work will remain suspended while Codelco expands monitoring, conducts further technical analysis and implements additional controls before deciding when construction can resume. Any prolonged delay would add to investor concerns over the execution of Codelco’s multi-billion-dollar mine overhaul at a time when the global copper market is expected to tighten as demand from electrification and data centers outpaces new supply. The accident on July 31 last year — Chile’s deadliest mining disaster in decades — forced Codelco to reassess development in deeper sections of the mine.
Andes Norte had gradually resumed work after the collapse, while the Andesita and Recursos Norte areas, where the fatalities occurred, remained closed. Earlier this year, Codelco said El Teniente’s annual output would remain around 300,000 metric tons in the coming years, below the 356,000 tons produced in 2024 before the fatal collapse. (Adds comment by consultant in fourth paragraph) More stories like this are available on bloomberg.com
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