Copper prices surged to nearly $12,000 per ton following the Fed’s rate cut, up 36% year-to-date amid concerns that supply may lag rising demand. In response, Chilean mining companies plan record investments of $105 billion through 2034, including expansions at the Escondida and Collahuasi mines, Commerzbank's commodity analyst Barbara Lambrecht notes.

Expansion plans target Escondida and Collahuasi

"The Copper price continues to set new records: After the Fed cut interest rates, it climbed significantly yesterday and reached almost $12,000 per ton this morning. The price is now 36% higher than at the beginning of the year. The main driver is concern that supply will not be able to keep pace with rising demand."

"However, the massive increase in the Copper price is likely to have an impact on supply. According to analyses by the Chilean Copper Commission Cochilco, investment plans for Chilean mining have been massively increased: according to company plans, almost $105 billion will be invested over the next decade until 2034."

"That would be 26% more than was predicted last year for the period 2024-2033, and the highest investment amount since 2015. The new investments include an expansion of the Escondida mine, the world's largest Copper mine, as well as new concentrate plants at the Collahuasi Copper mine."