Lundin Mining (TSX: LUN) cut its 2026 copper production forecast after a second severe winter storm hit the company’s operations in Chile’s Atacama region, disrupting its recovery from an earlier power outage.
The Canadian miner lowered Caserones’ full-year copper guidance to 120,000-130,000 tonnes from 130,000-140,000 tonnes. It also raised forecast cash costs at the operation to $2.15-$2.35 per lb. from $2.05-$2.25 per pound.
“Following the first storm, we expected the impact on production to remain within the lower end of our original guidance range,” CEO Jack Lundin said in the statement. “Unfortunately, a second severe storm disrupted recovery efforts and delayed our planned return to full operations, leading to additional unplanned downtime.”
The setbacks at Caserones have also weighed on Lundin’s company-wide outlook, reducing its consolidated copper production forecast to 300,000-325,000 tonnes and pushing expected cash costs to $1.95-$2.15 per pound.
Storm damage
The latest storm began Aug. 13, bringing heavy rain at lower elevations and unusually heavy snow and strong winds higher in the Andes.
Severe winds and snowfall caused another power outage at Caserones on Aug. 14 after damaging a transmission tower that had already been affected by an earlier storm. The mine had previously lost power from July 18 to July 30.
The back-to-back outages have extended the recovery period and forced Lundin to repair infrastructure and reopen access routes before Caserones can return to normal operations.
“Our teams continue to make strong progress restoring power, repairing infrastructure, and reopening access routes, and we remain focused on safely returning Caserones to full production as quickly as possible,” Lundin said.
The revised outlook highlights production and cost risks posed by extreme weather conditions at Lundin’s and other high-altitude Chilean mines.
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