Chile Accelerates 13 Copper Projects Ahead of Bullish 2026 Market
Chile to Add 13 Copper Projects Worth $14.8 Billion as Prices Surge Amid Supply Concerns
Chile is set to advance 13 copper projects valued at $14.8 billion in 2026, as global prices rise amid fears of a looming supply shortage.
Seven domestic projects aim to begin operations next year, adding nearly 500,000 tonnes of annual capacity supported by $7.1 billion in investment, according to official figures.
Key projects include Anglo American/Glencore’s Collahuasi upgrades (C20+), Codelco’s Rajo Inca structural project, Capstone Copper’s Mantos Blancos, and Andes Iron’s Dominga. Another six developments plan to start construction, representing $7.7 billion in spending, including BHP’s Spence and Capstone’s Santo Domingo projects.
Juan Ignacio Guzmán, CEO of Chilean mining consultancy GEM, cautioned that while several projects are scheduled to begin production in 2026, full ramp-up will take time. Based on Cochilco estimates, Chile’s output could rise to 5.6 million tonnes, an increase of roughly 100,000 tonnes of fine copper within a year. The International Copper Study Group projects a 2026 deficit of 150,000 tonnes, potentially widening if projects are delayed.
Benchmark Minerals analyst Albert Mackenzie highlighted the long-term demand for copper driven by the energy transition and technology sectors, including AI, noting the challenges of developing new mines.
Community relations remain the primary risk for Chile’s 2026 slate, Guzmán said. Projects already starting operations have cleared major hurdles, but those entering construction still face approval processes that could lead to court delays.
Significant investment will be crucial for these projections. Cochilco expects Chile to attract $105 billion between 2025 and 2034, including expansions at established operations like BHP’s Escondida, the world’s largest copper mine.
The election of ultra-conservative José Antonio Kast as Chile’s next president in March 2026 is seen as favorable for mining investors. Kast’s administration is expected to streamline permitting, reduce regulatory uncertainty, and enhance fiscal stability, potentially easing operational disruptions and accelerating project execution.
Copper prices have surged nearly 40% this year, reaching over $12,000 per tonne on December 23 amid global supply concerns. US stockpiling and Chinese smelter output cuts have tightened markets, with JP Morgan projecting a 330,000-tonne refined copper deficit in 2026. Analysts note that even as new mines come online, it takes time for metal to reach the market.
While structural deficits are debated, experts agree that rising demand and extraction challenges make the timely execution of Chile’s copper projects critical to meeting global supply needs and capturing opportunities in a bullish 2026 market.
SOURCE:mining.com
