Copper Sector to Rethink Strategies

The mining industry is still grappling with the implications of a new era in international trade marked by escalating tariff wars. While long-term attention remains fixed on a possible decision by the U.S. Department of Commerce regarding specific copper tariffs, mining executives are already anticipating changes in trade routes and potential shifts in global copper demand.

These concerns were front and center at the World Copper Conference, hosted by CRU and Cesco, where leading mining executives shared insights on the evolving landscape.

Trade Route Reconfiguration on the Horizon

“If copper previously had a defined commercial route to reach the U.S., Europe, or Asia, those routes are likely to be reconfigured due to the distortions introduced by tariffs,” said Iván Arriagada, CEO of Antofagasta Minerals, in an interview with Reuters.

Speaking later during a panel discussion, Arriagada noted that the broader demand for copper—driven largely by the global energy transition—could also be affected by intensifying trade tensions.

“I don’t believe it will fundamentally change, but the pace of the energy transition might slow down, which could alter current demand projections,” he added.

Despite these challenges, Arriagada highlighted that Antofagasta’s primary commercial partners are in Japan and South Korea, with less exposure to the U.S. and Europe. As a result, the company expects limited disruption to its supply chains.

He also expressed cautious optimism that policies under a potential Donald Trump administration could create a more favorable environment for U.S. mining projects such as Twin Metals.

“Our strategy is to remain cost-competitive and advance our current growth projects. We’re expanding both Centinela and Los Pelambres, which will boost our efficiency and scale,” he said.

Chile Must Act with Urgency

Alejandro Tapia, President of Minera Escondida, emphasized the urgency for Chile to accelerate project development in response to the changing global trade environment.

“As a country, we must act with a sense of urgency if we want to execute growth projects. Competition will be fierce, and Chile cannot afford to lose its leadership position,” Tapia stated.

Minera Escondida is pushing forward with a US$13 billion investment plan, which Tapia described as unprecedented in scale. He stressed that the initiative is grounded in operational excellence and high environmental standards, with broad benefits for Chile and the regions where the company operates.

“If companies meet regulatory and environmental standards, investment projects shouldn’t take an excessive amount of time to materialize,” he added.

While he acknowledged the Chilean government’s efforts to streamline permitting processes, Tapia urged more tangible progress, citing persistent delays in project approvals.

Call for Greater Industry Collaboration

Rubén Alvarado, CEO of Codelco, underscored the importance of collaboration in today’s complex landscape.

“These are times for collaboration. Efficiency and competitiveness are still key, but we also need to partner more across the industry,” Alvarado said.

Echoing this sentiment, Kathleen Quirk, CEO of Freeport-McMoRan, advocated for increased mine-sharing agreements as a way forward.

“We need more deals of this kind,” she emphasized.

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