Lundin Mining Corporation has lowered its full-year production outlook and raised cost projections for the Caserones copper mine in Chile’s Atacama Region following a second severe winter storm that disrupted recovery efforts and caused a fresh power outage.

The update shifts Caserones copper production guidance down to 120,000 to 130,000 tonnes, compared to its previous target of 130,000 to 140,000 tonnes. Cash cost expectations for the operation have climbed to between $2.15 and $2.35 per pound of copper, up from the earlier guided range of $2.05 to $2.25 per pound.

The disruption stems from extreme weather beginning August 13, which brought heavy rain at lower elevations alongside unusual snowfall and high winds at higher altitudes. Inspections revealed that severe winds re-damaged a transmission tower previously affected by an initial power outage that ran from July 18 to July 30. A second outage hit the site on August 14, idling operations and delaying the restart.

“Following the first storm, we expected the impact on production to remain within the lower end of our original guidance range. Unfortunately, a second severe storm disrupted recovery efforts and delayed our planned return to full operations, leading to additional unplanned downtime. As a result, we have revised our guidance to reflect the extended recovery period.”

— Jack Lundin, President and CEO

Repair crews have been dispatched to fix the damaged transmission infrastructure. Backup generators continue supplying power to critical site installations while maintenance teams work to restore full grid connectivity. Lundin anticipates complete power restoration by the end of the week, paving the way for a gradual and safe ramp-up of mining operations.

The weather-related setbacks at Caserones have also altered company-wide metrics. Consolidated copper production guidance for Lundin Mining now stands at 300,000 to 325,000 tonnes, with consolidated cash costs adjusted to between $1.95 and $2.15 per pound of copper. Meanwhile, the company’s nearby Candelaria copper complex, also located in the Atacama Region, escaped weather impacts and is expected to meet its original full-year production guidance.

Lundin expanded its holding in Caserones to 75% in April 2026 after acquiring an additional 5% equity interest from JX Advanced Metals Corporation for $215 million.

Read the full announcement: Lundin Mining's Chile Operations Impacted by Second Severe Winter Storm