Chilean copper miner Antofagasta has delivered increased production at its two largest copper mining districts, Los Pelambres and Centinela, in Chile, for the second quarter.

Copper production at company level rose by 3% compared with the first quarter of the year, reaching 160 100 t. This reflected stronger output at the Centinela Concentrates and Los Pelambres operations, partly offset by reduced production at cathode operations.

The company reported that, for the first half of 2025, copper production totalled 314 900 t, representing an 11% increase compared with production for the first half of 2024.

“Our pipeline of copper growth and development projects at both Centinela and Los Pelambres continues to advance on time and on budget, with recent market movements in by-product pricing strengthening the investment case for these projects,” Antofagasta CEO Iván Arriagada said on July 16.

Further, net cash costs declined by 27% on a quarter-on-quarter basis to $1.12/lb, supported by lower operating costs and higher by-product credits. The first half of the year saw a 32% year-on-year reduction in net cash costs, which averaged $1.32/lb.

The company stated that gold and molybdenum by-products contributed significantly to cost improvements. Gold production rose by 13% quarter-on-quarter to 48 300 oz, with increased output at both Centinela Concentrates and Los Pelambres.

Molybdenum output increased by 42% over the quarter to 4 400 t, driven mainly by higher production at Los Pelambres.

By-product credits reached $1.15/lb in the second quarter, up 39% from the previous quarter, while cash costs before credits stood at $2.27/lb, a 4% reduction quarter-on-quarter. The company attributed these reductions to increased volumes and favourable pricing for by-products.

Antofagasta confirmed that its full-year guidance remains unchanged. The company expects copper production for the year to be between 660 000 t and 700 000 t. Its cash cost guidance remains at $2.25/lb to $2.45/lb before credits and $1.45/lb to $1.65/lb after credits.

Capital expenditure guidance for the year also remains $3.9-billion.

Production is expected to increase through the remainder of this year, supported by maintenance activities completed in the first half of the year.

Project development work continued at both Centinela and Los Pelambres. At Centinela’s second concentrator project, progress included assembly of mining equipment at the Esperanza Sur mine, structural steel installation at the concentrator, assembly of mechanical equipment for concentrate thickeners, and installation of ball mill components. In the third quarter, construction is scheduled to begin on civil works for high-pressure grinding rolls and assembly of the primary crusher structure.

At Los Pelambres, work advanced on the growth enabling projects. For the concentrate pipeline, trench excavation and pipeline assembly continued, alongside installation of ventilation and lighting in tunnel sections. The third quarter will see commencement of work on the 33 000 v power line and electrical room assembly at the El Mauro tailings facility. Civil works also continued on the desalination plant expansion and related pumping stations.

“Our conviction in copper as the metal of the future remains, with a positive outlook for copper over the medium term. We see continuing demand support in the form of rising uses from key strategic sectors, driven by accelerating structural trends, such as energy security and modern technologies needed for decarbonisation, AI and infrastructure, with a supply-side that is becoming increasingly constrained,” Arriagada said.

The company also reported continued progress at the Zaldívar copper project, also in Chile. The environmental-impact assessment was approved during the second quarter. This approval followed an engagement process involving communities, government entities, and other stakeholders. The approval extends Zaldívar’s mine life to 2051, with a planned transition beginning in 2028 to a long-term water supply from seawater or a third-party source.