Chile lowered its copper production forecast for a second straight quarter as weaker output from some of the country’s biggest mines adds to supply constraints that have helped push up prices. The forecast cut, announced on August 11, 2026, reflects ongoing difficulties at major operations, including Codelco’s El Teniente processing facility in Machali, Chile. The facility, depicted in a photograph by Cristobal Olivares, is central to Chile’s copper production, which remains the world’s largest.

Weaker output from these key mines has tightened global copper supply, contributing to price increases. The latest reduction follows a similar cut in the prior quarter, signaling persistent operational and geological challenges. Chile’s copper industry faces aging infrastructure, lower ore grades, and water scarcity, which continue to hamper production targets.

The supply constraints have helped push up copper prices, benefiting some producers but raising costs for manufacturers worldwide. The forecast revision may further buoy prices if production fails to recover. Codelco, the state-owned miner, has been investing in upgrades but output remains under pressure. The cut underscores the fragility of Chile’s copper supply as global demand for the metal grows, driven by electrification and green energy transitions. The situation is being closely watched by markets and policymakers.