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| El Teniente |
El Teniente halt cuts copper supply after a fatal seismic event in late July. Codelco estimates a refined loss of 20–30kt. The revenue impact may reach $300mn, according to the chairman. Operations partially resumed from 10 August with staged ore movements. However, several sectors remain shut due to structural damage. Therefore, El Teniente halt cuts copper supply and squeezes near-term availability.
Operational Impact and Recovery Timeline
Codelco restarted limited activities after safety checks on 10 August. On 12 August, 59,100t of ore reached the Colón plant. The Sewell plant received 8,300t of ore on the same day. However, four key sectors remain halted. These include Recursos Norte, Andesita, Andes Norte, and Diamante. The shutdown follows a rockfall triggered by an earthquake on 31 July. Tragically, six workers lost their lives during the incident. As a result, El Teniente halt cuts copper supply as repairs continue.
Market Implications and Price Risk
The 20–30kt refined shortfall tightens a fragile balance. Inventories may cushion the hit, but only briefly. Physical premiums could firm near smelter hubs. Meanwhile, Chilean shipments may show timing distortions. Traders will watch ore routing and mill throughput closely. Price reaction depends on duration and repair pace. Therefore, contract liftings may face allocation adjustments.
The Metalnomist Commentary
Safety-driven ramp discipline will dictate the real supply impact. If sector repairs lag, extended tightening becomes likely despite partial ore movements.
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