Antofagasta sees profits surge as copper production rises in favourable US climate

London-listed miner Antofagasta has reported a remarkable 63 per cent increase in first-half profits, driven by a combination of higher copper production, robust commodity prices, and lower operational costs. The Chilean-based company revealed that revenues jumped by 29 per cent to $3.8 billion, a performance that exceeded analyst expectations.

This growth was achieved amid a 17 per cent rise in copper volumes sold and a 3 per cent uplift in average realised prices. The group, which is a constituent of the FTSE 100 index, also benefited from increased gold sales as a by-product of its copper operations, reporting a 53 per cent rise in gold volumes and an impressive 41 per cent surge in gold prices compared to the same period last year. These combined factors contributed to pre-tax profits reaching $1.2 billion.

Chief Executive Iván Arriagada said Antofagasta is actively exploring further growth opportunities, in particular the planned Twin Metals copper mine in Minnesota, USA. This project, capable of processing 18,000 tonnes of ore daily and delivering up to 80,000 tonnes of copper annually, is anticipated to benefit from a more favourable regulatory environment following policy signals from the current US administration.

The US government has been evaluating copper imports with an eye on national security, considering imposing tariffs on certain copper products. Although President Trump recently opted against taxing raw refined copper imports, there are plans to potentially introduce tariffs of 15 per cent from 2027 and 30 per cent from 2028. For now, Arriagada notes that less than 10 per cent of Antofagasta’s copper is sold to the US market, insulating the company from immediate impacts.

Antofagasta, majority-owned by the billionaire Luksic family, operates four established copper mines in Chile. The planned expansion into the US market comes as the sector responds to rising demand for commodities deemed critical for national security and technological advancement. Arriagada highlighted that the evolving US policy landscape offers a more supportive environment for mining development and investment, strengthening the prospects for projects such as Twin Metals. Nevertheless, he acknowledges that the development process for such ventures would span several years, with the company’s primary focus remaining on short-term growth initiatives in Chile.

Investors will be closely watching the progress of both the Twin Metals project and the broader US trade policy towards copper, especially as market volatility persists. The ongoing developments underscore the growing strategic importance of copper in the global supply chain and the asset’s role in Antofagasta’s future ambitions.