A deadly storm in Chile has killed at least 13 people and halted operations at major copper sites. Lundin Mining suspended its Caserones copper‑molybdenum mine in the Atacama region after heavy snow cut power, while Antofagasta paused mining and processing at Minera Los Pelambres for several days. State‑run Codelco also temporarily stopped work at El Teniente and other major mines.

Copper is essential for electricity grids, renewable energy and the data centres that will power AI, but analysts warn of a widening shortage as climate change fuels more extreme weather. Stone X analyst Natalie Scott‑Gray said the disruption adds to copper price volatility, and Wield More Investment Management founder Giuseppe Amitrano noted investors are increasingly pricing physical climate risk into production, cash flow and asset valuation.

Water scarcity compounds the problem. Older, lower‑grade mines need more water, and the ICMM warns that a third of 12,000 global mining facilities face high drought risk, with Chile singled out. Jefferies reports global copper output fell nearly 10 per cent in the latest quarter, raising the risk of sizeable deficits, while the International Energy Agency flags mounting difficulties sustaining production in Chile and Peru.