El Teniente Closure Disrupts MVC Copper Tailings Supply

El Teniente

El Teniente closure halts fresh copper tailings to MVC and curbs output. The MVC plant depends on El Teniente tailings for copper and molybdenum concentrates. As a result, Amerigo Resources faces immediate production losses.

Tailings halt forces shift to historic deposits

El Teniente closure followed a fatal seismic event on 31 July. Codelco suspended work at the Andesita project after a rockfall. Meanwhile, MVC will process historic tailings near Rancagua to maintain operations. The strategy preserves cash flow but reduces recovery rates. Therefore, near-term copper concentrate volumes will remain constrained.

Quantifying the production impact and market context

El Teniente closure translates to a 100,000 lb/d copper loss at MVC. That equals roughly 45 t/d removed from near-term supply. Consequently, daily output declines until fresh tailings resume. The disruption comes as Chile remains central to global copper supply. However, single-asset dependencies expose tailings re-treaters to operational shocks.

El Teniente closure also underscores safety and reliability risks. The world’s largest underground copper mine paused after six workers died. Codelco completed search and rescue on 3 August. Even so, restart timing remains unclear and guides MVC uncertainty. Therefore, Amerigo’s guidance will hinge on Codelco’s recovery schedule.

Amerigo balances volumes and recovery amid shifting feed quality. Historic tailings often deliver lower head grades and variable metallurgy. As a result, throughput optimization and reagent control become critical. Moreover, molybdenum credits may weaken if recoveries slip. Investors should monitor grade mix, cash costs, and working capital.

The Metalnomist Commentary

Tailings reprocessing adds low-capex copper units but carries feed-source risk. MVC’s pivot to historic deposits cushions revenue, yet margin dilution is likely. A quick El Teniente restart would limit market impact; prolonged downtime tightens regional concentrates.