Lundin Mining (TSX:LUN) is facing another setback in Chile after a fresh winter storm hit the northern Atacama region, disrupting its Caserones copper operation.
The Canadian miner says the mine complex, located more than 4,000m above sea level in the Andes, experienced another power outage last week after severe winds and heavy snowfall re-damaged a transmission tower.
Repair crews have since been mobilised and work is underway to restore the damaged infrastructure.
Lundin expects full power to be restored by the end of the week, followed by a gradual and safe ramp-up of operations.
Second outage in a month
The latest disruption comes just a month after Caserones was hit by an earlier winter storm, which caused a power outage lasting almost two weeks from 18 to 30 July.
“Northern Chile has experienced an unprecedented series of winter storms, with significant impacts on communities across the Atacama region and on our operations at Caserones,” President and CEO Jack Lundin says.
Adverse weather has also affected Lundin’s Candelaria copper operations in Chile, although the mine has since returned to full capacity.
The cumulative impact of the storms has prompted Lundin to lower its 2026 copper production guidance for Caserones to between 120,000 and 130,000 tonnes, from 130,000 to 140,000 tonnes previously.
Cash cost guidance for the operation has also been raised to between US$2.15 and US$2.35 ($3.02-$3.30) per pound, up from US$2.05 to US$2.25 a pound.
Candelaria, meanwhile, is still expected to meet its full-year production guidance.
Group outlook lowered
Following the Caserones revision, Lundin now expects consolidated copper production of between 300,000 and 325,000 tonnes in 2026.
Group cash cost guidance stands at between US$1.95 and US$2.15 per pound of copper.
The downgrade follows earlier warnings about the potential impact of Chile’s severe winter weather on Caserones.
Bloomberg analysts previously estimated that the July power outage alone could wipe around 10,000 tonnes from the mine’s copper production, putting its full-year guidance at risk.
The storm in July had also forced temporary disruptions at assets owned by major operators including Teck Resources (TSX:TECK.A/TECK.B), Codelco, and Antofagasta Plc (LSE:ANTO).
Lundin Mining is a Canadian company with three operating mines in Brazil and Chile.
Write to Jackson Chen at Mining.com.au
Image: Lundin Mining
