Antofagasta Faces Production Challenges with Copper and Molybdenum in 2024

Antofagasta

Underperformance and Environmental Challenges at Chilean Mines

Antofagasta, a major London-listed mining company, fell short of its 2024 production targets for copper and molybdenum. Despite a noticeable increase in fourth-quarter output, the company did not meet its annual goals and has adjusted its 2025 forecasts accordingly.

Details of Production Shortfalls

In 2024, Antofagasta reported producing 664,000 tonnes of copper, slightly up by 0.5% from 2023 but below the target range of 670,000 to 710,000 tonnes. The fourth quarter saw a significant 11.9% increase in copper output compared to the previous year, showcasing a strong end-of-year performance.

However, the company's molybdenum production decreased by 2.7% year-over-year, producing only 10,700 tonnes against a target of 11,000 to 12,500 tonnes. Despite this, fourth-quarter production saw a rise of 3.7%, ending at 2,800 tonnes.

Environmental and Regulatory Hurdles

Antofagasta also faces environmental scrutiny as it continues to use water from the Monturaqui-Negrillar-Tilopozo aquifer for its Zaldivar mine operations. Following a legal challenge by the Consejo de Defensa del Estado in December 2024, the mine's water usage rights have been extended only until May 2025. The future operation hinges on an environmental impact assessment currently under review, which if unapproved, could lead to a temporary shutdown of the mine. Zaldivar was responsible for 6% of Antofagasta’s total copper production in 2023.