Codelco, Chile’s state copper producer, and Sernageomin, the national mining regulator, have suspended underground operations at El Teniente after six workers died in a tunnel collapse triggered by a 4.2-magnitude tremor; the company will convene an international panel to determine causes and remedial actions amid concerns over near-term copper supply from one of the world’s largest underground mines.
Rescue Effort and Immediate Shutdown
A 100-person rescue team worked through the weekend to reach five miners missing since Thursday; all were found dead, bringing the toll to six after an earlier fatality. The collapse occurred in the Andesita section of El Teniente. Authorities said nine others sustained non-life-threatening injuries. President Gabriel Boric decreed three days of national mourning. Sernageomin ordered a halt to all underground activities while Codelco prepares technical reports and a recovery plan required for any restart; surface operations and plants were not affected.
Safety Review and Accountability
“We have opened an investigation to determine if there were failures,” chairman Máximo Pacheco said, adding that if responsibility lies with supervisors or executives, “we will apply maximum measures.” Codelco will commission an international audit to examine geotechnical conditions and operating procedures at El Teniente, where mines are generally engineered to withstand stronger seismic events than Thursday’s tremor. Prosecutors have opened a parallel probe, and the regulator has asked for root-cause analysis and improvement proposals before lifting the suspension.
Production at Risk and Project Pipeline
El Teniente produced 356,000 tonnes of copper in 2024—about a quarter of Codelco’s total—and is central to stabilising the company’s output after several weak years. The Andesita development, together with Diamante and Andes Norte, is designed to sustain ore feed as older sections deplete. The temporary stoppage adds to schedule pressure on a multi-year investment programme across Codelco’s portfolio. The company lifted 2024 production to 1.328 million tonnes but remains below its pre-pandemic run-rate and is targeting 1.37–1.40 million tonnes this year.
Market Impact and Pricing
The accident comes as copper prices hover around recent levels despite tariff-driven volatility. LME three-month copper was about $9,650–$9,700 per tonne on August 5, while Comex front-month traded near $4.41 per lb on August 4. Traders are watching for any prolonged disruption at El Teniente, though initial impacts may be mitigated by stockpiles and the confinement of the shutdown to underground areas.
Company Background and Market Context
Codelco operates a network of large-scale mines including El Teniente, Chuquicamata, Andina and Radomiro Tomic, and reclaimed the top global producer title in 2024 after edging BHP in output. El Teniente, in operation since 1905, is the world’s largest underground copper mine, with more than 4,500 km of tunnels. The firm’s recent performance has been constrained by project delays and safety incidents; the regulator last year cited dozens of sanctions since 2021. Management has stepped up audit and maintenance programs after accidents at Radomiro Tomic and other divisions.
Copper is a bellwether for global industry, feeding power grids, construction, electronics and EVs. Prices have eased from spring highs but remain elevated by historical standards as clean-energy demand offsets softer manufacturing data; spot moves this week clustered around $9,700/t on the LME and $4.41/lb on Comex. Sustained interruptions at large Chilean assets tend to tighten concentrates and refined balances with a lag.
