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Chile produces near a quarter of copper concentrate, but smelts little
Chile’s smelters processed only about 4.2% of global copper in 2025, despite concentrate output of roughly 23%, leaving the country export-heavy and exposed to China demand.
Chile produces nearly a quarter of the world’s copper concentrate but smelts only a small fraction of global copper, underscoring a growing supply chain gap as China’s processing footprint expands, according to a study released this week by the state copper commission Cochilco, cited by Mining.com.
Cochilco estimated Chile accounted for about 23% of global copper concentrate production in 2025, while its share of worldwide smelted copper production fell to about 4.2%. That compares with a 13.3% smelted share in 1990, highlighting the long-term shift away from Chilean refining.
The commission said Chile has Latin America’s largest smelting capacity, about 5.44 million tonnes of concentrate treatment annually, but plants run at roughly 60% of nominal capacity. Chile exports much of its concentrate for processing abroad, with about two-thirds of those exports going to China, which can provide access to the largest smelting market but also ties Chile’s leverage to Chinese demand and policy.
Cochilco attributed the imbalance to weak smelting economics, with spot treatment and refining charges, or TC/RCs, around zero or into negative territory as processors compete for limited concentrate. It also pointed to constrained concentrate supply from declining ore grades, project delays, and disruptions, alongside rising copper demand tied to the energy transition and increased smelter competition for raw material.
The study said Cochilco sees the immediate opportunity in improving operational continuity, availability, and treated volume before committing to new capacity expansions. It named Chile’s five major operating smelters and noted that Codelco has an agreement with Glencore to evaluate a new facility, while ENAMI is working to modernize an ageing plant, though it cautioned that further construction must clear additional hurdles.
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