{"id":688378,"date":"2026-10-18T00:30:00","date_gmt":"2026-10-18T00:30:00","guid":{"rendered":"https:\/\/buglecall.org\/?p=688378"},"modified":"2026-10-18T00:30:00","modified_gmt":"2026-10-18T00:30:00","slug":"5-challenges-facing-south-americas-copper-boom","status":"publish","type":"post","link":"https:\/\/buglecall.org\/?p=688378","title":{"rendered":"5 Challenges Facing South America&#8217;s Copper Boom"},"content":{"rendered":"<p><span class=\"field field--name-title field--type-string field--label-hidden\">5 Challenges Facing South America&#8217;s Copper Boom<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><em><a href=\"https:\/\/oilprice.com\/Metals\/Commodities\/5-Challenges-Facing-South-Americas-Copper-Boom.html\">Authored by Charles Kennedy via OilPrice.com<\/a>,<\/em><\/p>\n<ul>\n<li>\n<p>Escondida supervisors, about 1,020 workers at the world\u2019s largest copper mine, said they would strike at 8 a.m. local time Wednesday, a week after workers walked out at Centinela.<\/p>\n<\/li>\n<li>\n<p>Chile\u2019s August copper output fell 12.8% to 369,500 tons, the lowest monthly total since February 2011, and a fatal landslide hit Codelco\u2019s El Teniente on Sunday.<\/p>\n<\/li>\n<li>\n<p>The IEA still sees primary copper supply about 25% short of requirements by 2035, while Peru targets $33 billion in mining investment and Argentina\u2019s Vicu\u00f1a aims for a final investment decision by year-end.<\/p>\n<\/li>\n<\/ul>\n<p>Supervisors at BHP&#8217;s Escondida, the world&#8217;s largest copper mine, <a href=\"https:\/\/www.mining.com\/web\/supervisors-at-bhps-escondida-mine-in-chile-to-strike-after-contract-talks-fail\/\">said they would strike<\/a> at 8 a.m. local time Wednesday after government-led mediation failed to produce a contract. The union represents about 1,020 workers at a mine that supplies roughly <a href=\"https:\/\/www.riotimesonline.com\/chile-copper-mine-strike-escondida-2026\/\">a quarter of Chile&#8217;s copper<\/a>, and the stoppage follows a <a href=\"https:\/\/www.miningweekly.com\/article\/workers-at-chiles-centinela-copper-mine-strike-after-talks-fail-2026-10-07\">walkout<\/a> at Antofagasta&#8217;s Centinela that began Oct. 7. Both land as governments across the Andes ask miners for far more copper, not less.<\/p>\n<p><a data-image-external-href=\"\" data-image-href=\"https:\/\/assets.zerohedge.com\/s3fs-public\/inline-images\/2026-10-14_gtirrqgclo.jpg\" data-link-option=\"0\" href=\"https:\/\/assets.zerohedge.com\/s3fs-public\/inline-images\/2026-10-14_gtirrqgclo.jpg\"><img decoding=\"async\" alt=\"\" data-entity-type=\"file\" data-entity-uuid=\"a999d575-e7c6-43c2-8af9-c736904825b2\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/inline-images\/2026-10-14_gtirrqgclo.jpg\" \/><\/a><\/p>\n<h2>Demand will not wait<\/h2>\n<p><strong><a href=\"https:\/\/press.spglobal.com\/2026-01-08-Substantial-Shortfall-in-Copper-Supply-Widens-as-the-Race-for-AI-and-Growing-Defense-Spending-Add-to-Accelerating-Demand,-New-S-P-Global-Study-Finds\">S&amp;P Global<\/a> projects that copper demand will climb from 28 million metric tons in 2025 to 42 million tons by 2040, with AI data centers and defense each roughly tripling their consumption, and it warns that supply could fall 10 million tons short.<\/strong> The IEA still sees primary supply <a href=\"https:\/\/www.mining.com\/?p=1210690\">about 25% short<\/a> of requirements in 2035, down from a 30% gap in last year&#8217;s edition.<\/p>\n<p>Copper runs through grids, electric vehicles, wind and solar farms and the <a href=\"https:\/\/oilprice.com\/Metals\/Commodities\/Copper-Prices-Surge-Toward-12000-on-AI-Demand-and-Supply-Chaos.html\">AI data center<\/a> buildout, which S&amp;P says could account for 14% of U.S. power demand by 2030, so a shortfall in the metal reaches well beyond mining. <a href=\"https:\/\/about.bnef.com\/insights\/commodities\/commodities-in-2026-10-numbers-to-watch-from-power-to-oil\/\">BloombergNEF<\/a> has warned that a tight market could bring cost inflation or delays for electrification projects. Peru is targeting at least <a href=\"https:\/\/www.kitco.com\/news\/off-the-wire\/2026-08-21\/peru-aims-33-billion-mining-pipeline-fujimori-cuts-red-tape\">$33 billion<\/a> in mining investment over five years, and Chile&#8217;s pipeline tops <a href=\"https:\/\/www.edc.ca\/en\/trade-matters\/chile-economic-outlook-2026.html\">$100 billion<\/a> over the decade.<\/p>\n<h2>Chile keeps losing output<\/h2>\n<p><strong>Chile&#8217;s copper output fell <a href=\"https:\/\/www.bloomberglinea.com\/latinoamerica\/chile\/la-produccion-de-cobre-en-chile-se-desploma-13-su-nivel-mas-bajo-en-mas-de-15-anos\/\">12.8%<\/a> in August from a year earlier to 369,500 tons, the lowest monthly figure since February 2011, according to national statistics data reported by Bloomberg.<\/strong> On Sunday, heavy rain triggered a <a href=\"https:\/\/www.miningweekly.com\/article\/chiles-el-teniente-mine-partially-suspends-operations-after-fatal-landslide-2026-10-12\">landslide<\/a> at Codelco&#8217;s El Teniente mine that killed two contractors and led the company to partially suspend operations, and <a href=\"https:\/\/www.mining.com\/web\/codelco-suffers-new-fatalities-as-avalanche-hits-copper-mine\/\">El Ni\u00f1o<\/a> could bring more rain to Chile and Peru in the months ahead.<\/p>\n<p><a href=\"https:\/\/www.investing.com\/news\/commodities-news\/chiles-copper-output-to-fall-26-in-2026-says-cochilco-93CH-4852355\">Cochilco<\/a> expects national production to fall 2.6% this year to 5.27 million tons before recovering to 5.55 million in 2027. <a href=\"https:\/\/www.brecorder.com\/news\/40444164\/copper-firms-with-focus-on-supply-developments-in-chile\">TD Securities<\/a> analysts said strike votes, worker fatalities and operational disruptions have helped &#8220;maintain a supply-risk premium,&#8221; and copper has held close to its September <a href=\"https:\/\/oilprice.com\/Metals\/Commodities\/Copper-Hits-Record-Highs-While-Smelters-Lose-Money-on-Every-Ton.html\">record high<\/a>.<\/p>\n<h2>China&#8217;s acid squeeze<\/h2>\n<p><strong><a href=\"https:\/\/www.mining.com\/web\/copper-king-chile-faces-acid-supply-crunch-as-china-exports-dry-up\/\">Morgan Stanley<\/a> estimated in April that 1.1 million tons of Chile&#8217;s annual leached copper output, more than half its refined production, could be exposed to a Chinese ban on sulphuric acid exports.<\/strong> Miners use the acid to leach metal from ore, and Chinese customs data showed shipments to Chile fell to zero in March, with Beijing reportedly planning a full halt from May.<\/p>\n<h2>Permits and protests<\/h2>\n<p>Permitting in Chile can take as long as <a href=\"https:\/\/www.mining-technology.com\/features\/permitting-not-geology-why-chiles-mining-sector-is-stalling\/\">12 years<\/a> in some cases, according to GlobalData, and President Jos\u00e9 Antonio Kast ordered ministers in March to clear 50 pending claims tied to about $16 billion in projects. In Peru, President Keiko Fujimori&#8217;s government wants to authorize 240 exploration and extraction projects this year, yet the <a href=\"https:\/\/www.mining.com\/web\/fujimoris-mining-push-could-spur-unrest-in-peru-study-says\">Observatory of Mining Conflicts<\/a> counts nearly 200 social conflicts nationwide, 64 of them tied to mining and other environmental disputes, and says most of the main mining regions voted against her.<\/p>\n<h2>Argentina starts from zero<\/h2>\n<p><strong>Argentina has not produced copper <a href=\"https:\/\/www.mining.com\/argentina-mining-revival-fuels-40b-copper-push\/\">since the Alumbrera mine closed in 2018<\/a>, which makes Vicu\u00f1a, the BHP and Lundin Mining venture, its biggest test.<\/strong> The project received the top tier of <a href=\"https:\/\/www.e-mj.com\/breaking-news\/vicuna-secures-rigi-peelp-approval-in-argentina\/\">RIGI<\/a> benefits this year, and its backers are targeting a final investment decision on a $7.1 billion first phase before year-end, with first copper planned for 2030.<\/p>\n<p>In April, a judge in neighboring <a href=\"https:\/\/www.kitco.com\/news\/off-the-wire\/2026-04-29\/argentina-court-lifts-suspension-vicuna-copper-project\">La Rioja<\/a> ordered a 30-day suspension and blocked machinery from using an access road through the province, saying the province had been left out of the environmental assessment. A San Juan court allowed work to continue days later.<\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" lang=\"\" class=\"username\" xml:lang=\"\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Sat, 10\/17\/2026 &#8211; 20:30<\/span><img decoding=\"async\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/inline-images\/2026-10-14_gtirrqgclo.jpg\" title=\"5 Challenges Facing South America&apos;s Copper Boom\" \/><\/p>","protected":false},"excerpt":{"rendered":"<p>5 Challenges Facing South America&#8217;s Copper Boom Authored by Charles Kennedy via OilPrice.com, Escondida supervisors, about 1,020 workers at the world\u2019s largest copper mine, said they would strike at 8 a.m. local time Wednesday, a week after workers walked out at Centinela. Chile\u2019s August copper output fell 12.8% to 369,500 tons, the lowest monthly total&hellip; <a class=\"more-link\" href=\"https:\/\/buglecall.org\/?p=688378\">Continue reading <span class=\"screen-reader-text\">5 Challenges Facing South America&#8217;s Copper Boom<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[20,23],"tags":[],"class_list":["post-688378","post","type-post","status-publish","format-standard","hentry","category-economic-empowerment","category-national-security","entry"],"_links":{"self":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/688378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=688378"}],"version-history":[{"count":0,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/688378\/revisions"}],"wp:attachment":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=688378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=688378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=688378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}