Codelco, Chile’s state copper producer, and Chile’s labor inspectorate have authorized a phased restart at El Teniente in areas unaffected by the July 31 tunnel collapse that killed six workers, while sections including Recursos Norte and Andesita remain idled pending further inspections and engineering reviews. The return of units such as Pilar Norte, Panel Esmeralda, Pacifico Superior and Diablo Regimiento may trim operational disruption at one of the world’s largest underground copper mines.
What’s reopening—and what remains suspended
The labor inspector’s sign-off follows the mining regulator’s green light for a limited restart, contingent on enhanced safety controls and a detailed operating plan. Codelco can resume mining and development only in zones not impacted by the 4.2-magnitude event that struck the Andesita development on July 31; inspections continue across damaged levels, where regional prosecutors estimate around 3.7 km of workings were affected. Resources Norte and Andesita remain under suspension until geotechnical stability is demonstrated.
Safety pathway and oversight
Authorities have demanded root-cause analysis and updated ground-support designs before any broader restart. Codelco has commissioned an international audit as part of its response; investigators are documenting damaged areas and reconstructing event sequences to test whether mining-induced stresses triggered the rockburst-style failure. The company is expected to publish a site-specific safety plan covering all active panels, refuge access and evacuation protocols as work resumes outside the restricted zones.
Market impact and pricing
El Teniente accounts for roughly a quarter of Codelco’s output and spans more than 4,500 km of tunnels, so even a partial halt draws trader attention. The phased restart reduces the risk of extended supply losses while the investigation proceeds. LME three-month copper traded around $9,700–$9,780 per tonne on August 11, steady near recent levels as the market weighed Chilean developments against broader macro signals.
Company Background and Market Context
Codelco remains the world’s largest copper producer, lifting total output (including affiliates) to about 1.44 million tonnes in 2024, with company-owned production at ~1.33 million tonnes. El Teniente—over a century old—sits high in the Andes and is central to stabilising Codelco’s volumes after several challenging years. The July 31 accident was among Chile’s most serious underground incidents in decades; regulators and prosecutors continue parallel probes while contractors linked to the affected works face temporary suspensions during the review window.
Copper is a backbone metal for power grids, construction, electronics and electric vehicles. Prices remain elevated by historical standards as grid and EV demand offset manufacturing softness; near-term moves will hinge on the duration of restrictions at major Chilean assets and the pace at which unaffected El Teniente panels return to plan.
