Antofagasta CEO Ivan Arriagada Places Strategic Bets on Copper amid Global Demand Growth

Ivan Arriagada, chief executive of the FTSE 100 copper giant Antofagasta, is staking significant ground on the future of copper as global industries pivot towards electrification. Meeting for lunch at Mareida, a Chilean restaurant in London with interiors echoing the mining sector, Arriagada exuded approachability, deftly moving between his Chilean roots and the international business landscape. Mareida’s design, featuring copper mine byproducts and rock displays, visually narrates the story of the industry from which Arriagada has built his considerable career.

Antofagasta remains a leading player in copper mining, holding a market valuation exceeding £27 billion. The company’s primary sources are the Los Pelambres mine north of Santiago and a cluster of operations in the Antofagasta region much further north. Last year, the group produced 664000 tonnes of copper, approximately 3 percent of global copper mine output, underlining its strategic role in a market experiencing constrained supply and heightened demand due to rising electrification across numerous sectors.

Arriagada, aged 62 and born in Concepción, studied at business school in Viña del Mar and later at the London School of Economics. He began his professional journey with Shell, transitioning through roles in the UK, Argentina, and the United States before returning to Chile and eventually moving into mining. His tenure included posts at BHP and state-owned Codelco before he assumed leadership at Antofagasta in 2015. The Luksic family retains majority ownership, yet Arriagada stresses the company benefits from robust corporate governance due to its UK listing that dates to 1888.

With copper prices recently hitting new highs, Antofagasta’s shares have surged over 70 percent this year. Arriagada attributes this momentum to a looming supply deficit and copper’s critical role in energy transition technologies and other fields such as medicine and defence. Investment is flowing into expanding production, notably with a new processing plant at Centinela and efforts at Los Pelambres that could extend its operational life to 2050. Recent severe droughts have hampered production potential, but Antofagasta’s investment in desalination now guarantees water availability without burdening local river systems.

Policy risks linger despite success. In the United States, Antofagasta’s attempt to develop the Twin Metals project in Minnesota faces fluctuating regulatory support. Arriagada notes that changes in administration have led to lease approvals and cancellations in cycles. The company sees long term security of tenure as critical, with actual mine development contingent on navigating stringent US permitting processes.

Geopolitical and economic shifts in Chile are also shaping the business climate. Social instability and changing political leadership are directing public focus to security and economic recovery. While the company maintains neutrality, Arriagada suggests that substantial reforms may accompany a more centre right government. Amid these dynamics, mergers and acquisitions proliferate in the sector, and Antofagasta’s proximity to other major assets opens discussion about potential synergies, notably with nearby BHP and Glencore operations.

Despite technological advances and an increased interest in copper recycling, primary copper supply remains vital. Arriagada believes the fundamental story is one of enduring shortages, positioning Antofagasta at the centre of a vital global market as industries and nations accelerate demand for this strategic metal.