Key facts
- BHP's Escondida mine, the world's largest copper producer, faces a strike.
- Chile's copper output fell to its lowest monthly figure since February 2011 in August.
- China's potential ban on sulfuric acid exports could impact over half of Chile's refined copper production.
- Permitting for mining projects in Chile can take up to 12 years.
- Argentina's Vicuña copper project is targeting a final investment decision before year-end.
Supervisors at BHP's Escondida, the world's largest copper mine, plan to strike Wednesday after mediation failed to secure a contract, adding to disruptions in South America's copper sector. This follows a strike at Antofagasta's Centinela mine that began earlier in October. Chile's copper output has been declining, with August figures showing a 12.8% year-on-year drop to the lowest level since February 2011. Further impacting production, a landslide at Codelco's El Teniente mine killed two contractors and led to partial operational suspension. China's potential ban on sulfuric acid exports, crucial for leaching copper ore, also poses a risk to Chilean production. Permitting delays and social conflicts in Chile and Peru, alongside legal challenges in Argentina for the Vicuña project, further complicate the supply outlook. Copper demand is projected to rise significantly by 2040, driven by AI data centers and electrification, with forecasts warning of a substantial supply shortfall.