Codelco regains title as world’s top copper producer

Chief Executive Officer Ruben Alvarado of Codelco said the company is overhauling everything from geological modelling, to mining technology, to beneficiation processes

Chile’s Codelco has regained title as the world’s largest copper producer, narrowly beating BHP by 10,000 tonnes, according to an internal report from the company on Friday.

Codelco posted total annual production of 1.44 million tonnes. According to Bloomberg Intelligence estimates, Melbourne-based BHP Billiton’s 2024 copper production should be 1.43 million tonnes.

Chief Executive Officer Ruben Alvarado of Codelco said the company is overhauling everything from geological modelling, to mining technology, to beneficiation processes. These key projects are unlocking the hidden value of older mines. Codelco is struggling to recover and catch up from delays and missteps in its projects, after the state-run giant experienced decades of underinvestment.

London Metal Exchange (LME) copper price surged to an all-time high of $11,840 a tonne last week, up 42% from the start of the year, as news broke that the implementation of US tariffs on copper products could be brought forward. At the Financial Times Commodities Summit in Switzerland, an executive from Trafigura said global refined copper stocks had fallen to a 15-year low and any supply disruption could trigger a price spiral.

Global copper demand is expected to grow at a rate of 3.5 per cent in 2025, while mine capacity growth is only 1.8 per cent, according to the International Copper Study Group (ICSG). This mismatch between supply and demand is forcing miners to accelerate strategic adjustments.

Goldman Sachs commodities director Jeff Currie pointed out in the latest report, the current copper prices have fully reflected the short-term supply constraints, but if the U.S. tariff policy combined with risk of strikes in Chile, copper prices may break through $12,000.

BHP Group benefited from increased production at Escondida, the world’s largest copper mine. The company is currently embarking on a $10.8 billion investment programme to overhaul its ageing operations in Chile. According to BHP Billiton, the company’s production in Chile will average about 1.4 million tonnes a year over the next decade. Without these investments, production would fall to about 900,000 tonnes.