Anglo American’s Collahuasi Mine to Resume Full Copper Production by 2027
Anglo American Expects Collahuasi Copper Output to Return to 600,000 Tons by 2027
Anglo American expects its flagship Collahuasi copper mine in Chile to return to normal output levels in 2027 after a period of lower-quality ore has constrained production and weighed on supply projections for next year.
Collahuasi, jointly owned by Anglo American and Glencore (each holding 44%), is projected to produce about 600,000 metric tons of copper in 2027, according to Ruben Fernandes, Anglo American’s COO.
The rebound is expected as mining shifts to richer ore areas and a new desalination plant comes fully online, easing longstanding water constraints.
“Water will no longer be a problem,” Fernandes said at a conference in Salvador, Brazil. “By the second half of next year, we’ll reach higher-grade material, allowing Collahuasi to return to regular production.”
A Key Asset in Anglo’s Portfolio
At full capacity, Collahuasi ranks among the world’s largest copper mines and is a cornerstone of Anglo American’s portfolio. In its latest quarterly update, the company warned that production in 2026 would likely remain below expectations, contributing to tightness in the global copper market. Copper prices recently hit record highs amid concerns over supply setbacks.
The mine is also central to Anglo American’s planned merger with Teck Resources. High-grade ore from Collahuasi is expected to supply Teck’s Quebrada Blanca mine, potentially adding 175,000 tons of copper annually and boosting profitability by an estimated $1.4 billion per year.
Fernandes noted that discussions with Collahuasi’s other partners, including a Mitsui & Co.-led consortium that holds the remaining 12%, will only begin once regulatory and antitrust approvals for the Anglo-Teck merger are secured.
“That’s when we’ll have all the green lights to proceed with the integration,” he said.
Copper’s Long-Term Outlook Remains Strong
Despite near-term challenges, Fernandes remains bullish on copper demand, driven by the energy transition and the growth of data centers linked to artificial intelligence. He highlighted the lengthy timeline required to bring new copper projects online:
“It takes 15 to 20 years to develop a new copper mine. If demand grows 2.5% to 3% annually over the next two decades, the world will need 30 to 40 new mines the size of Quellaveco in Peru — each producing about 300,000 tons per year. That’s a lot of copper.”
Anglo American’s strategic positioning at Collahuasi underscores its long-term commitment to meeting growing global copper demand, despite operational and market challenges in Chile, Indonesia, and the Democratic Republic of the Congo.
