Chile’s mining production drops 6.6% in February due to decline in copper processing

The Mining Production Index fell for the third consecutive month, mainly dragged down by metallic copper and reduced lithium activity, according to data from Chile’s National Statistics Institute (INE).

Mining continues to weigh down Chile’s industrial activity. According to the latest Economic Sectors Bulletin released by the National Statistics Institute (INE), the Mining Production Index (IPMin) dropped by 6.6% in February 2025compared to the same month last year. The decline significantly impacted the broader Industrial Production Index (IPI), which fell by 3.6% in the same period.

The main factor behind the drop was the poor performance of metallic mining, which fell by 7.4% and accounted for -6.397 percentage points of the overall mining index. This category is primarily driven by copper production, which saw declines due to lower ore grades, scheduled maintenance, and reduced extraction volumes.

According to INE, the copper sector’s operational challenges were the key reasons for the downturn. Several major mining companies experienced decreased processing capacity during the month, exacerbating the decline in overall output.

Copper and lithium slow sector momentum

In addition to copper, non-metallic mining—which includes lithium carbonate production—also showed signs of a slowdown, posting a year-on-year decline of 1.3%. This drop was influenced by lower global prices and reduced export volumes of lithium.

On a brighter note, the only component of the mining index that showed positive growth was energy resource extraction, which rose by 4.0% year-on-year. This uptick was mainly attributed to a slight increase in crude oil production, although its overall impact on the mining index was marginal.

This latest monthly decline marks the third consecutive drop in mining activity, highlighting ongoing challenges for Chile’s flagship industry amid global demand for critical minerals tied to the energy transition.

Industry stakeholders warn that this context adds pressure to investment and planning decisions for 2025. Regulatory uncertainty, logistical difficulties, and the need for operational continuity are emerging as key issues for mining companies across the country.