ANGLO American anticipates its flagship Chilean copper mine will return to normal production levels in 2027 after confronting a period of lower-quality ore that will restrict output next year, said Bloomberg News on Wednesday.
Annual production at Collahuasi, in which Anglo and Glencore each hold 44% stakes, should recover to approximately 600,000 tons as operations access richer sections of the open pit and a new desalination plant reaches full capacity next year, COO Ruben Fernandes told the newswire.
“Water will no longer be a problem,” Fernandes said. “By the end of the second half, we’ll reach areas with higher-grade material, allowing Collahuasi to return to regular production.”
Operating at full capacity, Collahuasi ranks among the world’s largest copper mines and represents a crucial asset in Anglo’s portfolio, said Bloomberg News.
In its latest quarterly update, Anglo cautioned that Collahuasi’s output would likely fall short of expectations next year, exacerbating tightness in the copper market. The metal achieved a record high on Wednesday partly owing to mounting supply concerns.
The mine also features prominently in Anglo’s proposed merger with Teck Resources. Collahuasi’s high-grade ore would feed Teck’s neighbouring Quebrada Blanca mine, potentially adding 175,000 tons annually and enhancing profitability by an estimated $1.4bn yearly.
Discussions with Collahuasi partners, including a Mitsui-led consortium holding the remaining 12%, will commence only after securing regulatory and antitrust approvals for the Anglo-Teck combination, Fernandes said.
Fernandes remains optimistic about copper’s long-term prospects, citing surging demand from energy transition and artificial intelligence data centres.
