Antofagasta

The FTSE 100's underperformance was notably due to a sharp decline in the mining sector, particularly affecting Chilean miner Antofagasta. The company cut its 2026 copper output estimate due to a shutdown at its Los Pelambres mine after extreme rains prompted Chile’s government to declare a “state of catastrophe” in the Coquimbo Region.

Antofagasta’s copper production declined 9.5% year-on-year to 285,000 tonnes in H1 2026 due to lower ore grades, pipeline maintenance at Los Pelambres, and reduced throughput at Centinela concentrators. The drop reduced Chile’s export revenue and government royalties, indicating structural supply constraints.

The article highlights seven copper-producing companies for 2026, citing rising copper prices driven by supply disruptions and long-term demand from electrification, AI data centers, and housing. Copper's role as an economic indicator and its critical use in renewable energy and technology sectors are emphasized.

SQM, a Chilean chemical company, has increased its lithium production guidance as earnings exceeded estimates. The market for battery metal lithium is showing tentative recovery signs after a significant retracement last year.

Antofagasta, a Chilean mining company, is showing interest in participating in Argentina's copper exploration initiatives. The article highlights potential business opportunities in Argentina's natural resources sector.