Lundin Mining has been forced to scale back its annual copper production forecasts after a series of brutal winter storms battered Chile’s Atacama region. TheVancouver based miner revealed that a second severe weather event caused significant damage to infrastructure at the Caserones mine, specifically targeting a transmission tower that repair crews had only recently restored following a separate storm in late July. This latest blow knocked out power on August 14, leaving the site reliant on backup generators while technicians scramble to bring the grid back online before the end of the week.
Chief Executive Officer Jack Lundin explained that while the company initially hoped to absorb the losses from the first storm within their existing guidance, the repeat occurrence hindered recovery efforts and created unexpected downtime. Because of these delays, the firm has lowered its specific 2026 output forecast for Caserones to between 120,000 and 130,000 tons. This dip in productivity comes alongside rising costs, with cash cost projections for the mine climbing toward as much as 2.35 dollars per pound of copper.
On a broader scale, these setbacks have dragged down the company’s consolidated annual copper target to a range of 300,000 to 325,000 tons. While it is not all bad news across their Chilean portfolio, Lundin noted that operations at the nearby Candelaria mine remained largely unscathed by the recent volatility and continue to track toward original projections. The stability at Candelaria provides some balance during a turbulent season characterized by unpredictable mountain weather.
Despite these immediate hurdles in Chile, Lundin continues to lean on a strong financial foundation established earlier this year. The company reported substantial second quarter revenues of over one billion dollars and maintains a healthy net cash position even after investing heavily in expanded interests at both Caserones and the Los Helados project. Looking further ahead, the miner remains focused on growth in South America, particularly with its Vicuña project in Argentina where it expects to reach a critical sanction decision by the close of the year.
