Deep in the deserts of Chile, Antofagasta Plc extracts copper and other metals, playing a vital role in the global push for electrification, with its headquarters in London. Operating in the mining industry – specifically focusing on copper production – the company ranks among the world’s top copper producers, supplying materials critical for renewable energy and electric vehicles.
Antofagasta’s revenue primarily comes from mining and selling copper, with smaller contributions from gold, molybdenum, and silver as by-products. It operates four major mines in Chile: Los Pelambres, Centinela, Antucoya, and Zaldívar, producing 660,600 tonnes of copper in 2024, alongside 197,800 ounces of gold and 11,100 tonnes of molybdenum. The company sells copper in various forms – concentrates, cathodes, and blister copper – to smelters and fabricators globally, with prices tied to the London Metal Exchange, where copper averaged $9,300 per tonne in 2024. Los Pelambres, its largest mine, contributes over half of its production, while Centinela focuses on high-grade copper concentrates. Antofagasta also earns through its transport division, which operates rail and road networks in Chile to move copper and supplies. In 2024, the company reported revenues of $6.3 billion, up 3.2% from 2023, with an EBITDA of $3.1 billion, driven by higher copper prices despite a 9% production drop due to lower ore grades.
Antofagasta is investing heavily in growth, with a $2.7 billion expansion at Centinela to boost output by 140,000 tonnes annually from 2027, and exploring new projects in Canada and the US. However, environmental challenges loom – Los Pelambres faced community protests in 2025 over water usage in the drought-hit Choapa Valley, leading to temporary shutdowns and a $12 million fine for environmental breaches. The company is responding with sustainability efforts, aiming for 100% renewable energy usage by 2030, and has already cut water consumption by 20% since 2020. Employing 7,500 people, Antofagasta benefits from Chile’s stable mining environment, but it must navigate rising costs – up 5% in 2024 due to inflation – and increasing regulatory scrutiny on water and emissions.
Antofagasta’s focus on copper positions it well for the energy transition, as demand for the metal soars. Yet, environmental pressures, community relations, and operational risks in a competitive market require careful management to sustain its growth trajectory.
Amongst mining companies, Antofagasta does look interesting. It has a family holding that is well in excess of 60%. The family, is well-connected in Chilean politics, which seems necessary to remain a shareholder friendly business. Copper is amongst the clearest winners in the headlong rush towards eliminating carbon from energy. Additionally, new copper deposits are rarely of high grade or in convenient locations meaning that Antofagasta’s well-invested infrastructure makes its assets compelling. Nevertheless, the kind of returns on offer aren’t sufficient to excite readers of Wonder Stocks.
