Anglo American expects its Collahuasi copper mine in northern Chile to regain full production by 2027, following a period of reduced output caused by lower-grade ore and operational constraints. The mine, jointly owned by Anglo and Glencore Plc with a 44% stake each, is projected to return to an annual production level of roughly 600,000 metric tons within two years, according to the company’s chief operating officer, Ruben Fernandes.

The London-based miner is navigating a challenging phase at Collahuasi, one of the world’s largest copper operations, as the quality of ore temporarily declines. Anglo has cautioned that production from the site will likely be lower than anticipated in the coming year, adding pressure to an already tight global copper market. The warning coincides with record-high copper prices, driven partly by growing concerns over supply disruptions across several producing regions.

Fernandes said that production levels should improve gradually as Collahuasi begins accessing richer ore zones in its open pit and as a major desalination plant, currently under development, becomes fully operational next year. The new water facility is intended to support long-term output stability in Chile’s arid mining belt, where water scarcity has increasingly constrained operations. The Collahuasi mine is a cornerstone of Anglo American’s copper portfolio and also features prominently in the company’s proposed merger with Teck Resources Ltd. Under the merger plan, Collahuasi’s high-grade material would be supplied to Teck’s neighboring Quebrada Blanca mine, potentially generating an additional 175,000 tons of copper annually. The integration could also enhance profitability by an estimated $1.4 billion each year. However, Fernandes noted that formal discussions with Collahuasi’s partners — including a consortium led by Japan’s Mitsui & Co., which owns the remaining 12% stake — would not commence until all regulatory and antitrust approvals for the Anglo-Teck merger are finalized.

The operational update arrives at a time when the global copper industry faces mounting supply headwinds. Production challenges in major mining jurisdictions such as Indonesia, Chile, and the Democratic Republic of the Congo have underscored concerns about the sector’s ability to meet rising demand from the energy transition and technology sectors. Fernandes emphasized that structural underinvestment and lengthy permitting timelines continue to limit the pace of new copper mine development. “Bringing a new copper project on-line takes 15 to 20 years. If demand grows 2.5% to 3% annually over the next two decades, it’s about 30 to 40 new mines the size of Quellaveco in Peru — each producing about 300,000 tons a year. That’s a lot of copper,” he said in a recent interview.

Collahuasi’s recovery timeline and its integration with Teck’s operations could play a significant role in addressing near-term supply deficits, especially as copper remains a central metal for renewable energy infrastructure, electric vehicles, and data center expansion linked to artificial intelligence. Despite the short-term production dip, Anglo American maintains confidence in Collahuasi’s long-term contribution to global supply and its strategic value within the evolving copper market. The company’s focus on operational improvements and water infrastructure reflects broader efforts across the industry to balance environmental constraints with surging industrial demand.

If production returns to full capacity as planned, Collahuasi will continue to rank among the top copper-producing mines worldwide, reinforcing Chile’s position as a critical hub in the global energy transition.