More Copper, More Power: The Energy Equation Reshaping Chilean Mining

Chile’s copper mining industry is the backbone of the national economy and a critical supplier to the global energy transition. But powering that industry comes at an increasing cost – and that cost is electricity.

A new report from Cochilco (Chile’s Copper Commission, Ministry of Mining), published in April 2026, projects how much electricity Chilean copper mining will consume over the next decade, and the findings have significant implications for energy planners, mining operators, technology providers, and anyone following Chile’s industrial transformation.

Here are the most important takeaways.

Electricity Consumption Is Growing Faster Than Production

The headline number: copper mining’s electricity consumption is projected to grow 20.2% — from 27.6 TWh in 2025 to 33.2 TWh by 2034. That’s more than double the rate of copper production growth, which is expected to rise only 8.3% over the same period.

Why the gap? The short answer is that the industry is working harder to produce the same amount of copper. Ore grades are declining as deposits age, which means mines need to process greater volumes of rock to extract the same amount of refined metal. More rock means more energy, especially in concentration plants, which are by far the most electricity-intensive step in the process.

This divergence between energy growth and production growth is one of the defining structural trends of Chilean mining today.

Concentration Plants Will Dominate Energy Demand

The concentration process, which crushes and processes sulfide ore into copper concentrate,  already accounts for 55% of all electricity used by the sector, and that share holds steady through 2034. In absolute terms, concentration will consume 18.1 TWh by 2034, up from 15.1 TWh today.

Meanwhile, the older hydrometallurgical process (leaching oxide ores to produce copper cathodes, known as LX/SX/EW) is heading in the opposite direction. As oxide ore deposits are exhausted, this process will shrink from 15% of sector electricity consumption to just 10% by 2034.

For technology and equipment companies, this is a clear signal: the growth market is in concentration circuits, not cathode plants.

Seawater Is Becoming the Second Biggest Energy Consumer

One of the most striking findings in the report is the projected rise of seawater-related electricity consumption. Because water restrictions in northern Chile are tightening, mines are increasingly pumping desalinated seawater from coastal plants up to operations that can sit thousands of meters above sea level.

The electricity needed for desalination and pumping is projected to grow 60%, reaching 5.4 TWh by 2034. By that point, seawater use will be the second most energy-intensive process in the entire sector, behind only the concentration plant.

The shift from continental to sea water sources brings with it a massive and growing electricity burden.

The Growth will Happen in Two Distinct Waves

The report breaks the decade into distinct phases, which matters for anyone planning infrastructure or investments around this demand curve:

• 2025–2027: A first surge in consumption, reaching 31.3 TWh, driven by projects already in construction or at advanced stages.
• 2028–2031: A plateau. Production dips as mature operations decline and replacement projects aren’t yet online.
• 2032–2033: A second surge, peaking at 34.0 TWh in 2033, powered by expansion projects and new greenfield developments focused on sulfide ore.

Understanding this non-linear trajectory is essential for grid operators, energy suppliers, and equipment manufacturers planning their own investment cycles.

The Renewable Energy Transition Is Well Underway

Perhaps the most encouraging finding in the report is the pace of the sector’s shift to renewable energy. By 2030, Cochilco projects that 98.6% of all electricity consumed by copper mining will come from renewable sources.

This is being driven by long-term Power Purchase Agreements (PPAs) signed between mining companies and renewable generators. Several of Chile’s largest mining operations — including those run by BHP, Antofagasta Minerals, Anglo American, Collahuasi, Glencore, and Lundin Mining — already operate on 100% renewable electricity. Codelco has committed to the same target by 2030, and Teck’s Quebrada Blanca operation achieved it in 2025.

Over the full 2025–2034 period, approximately 89% of the sector’s cumulative electricity consumption (274.6 TWh out of 307.2 TWh total) is expected to come from renewable sources. This is a dramatic transformation for an industry that once depended heavily on coal and gas.

That translates to 274.6 TWh of contracted renewable demand over the decade, requiring significant new solar and wind capacity in northern Chile, where irradiation conditions are among the best on the planet. But generation alone won’t be enough. As renewable penetration approaches 100% across an industry that operates around the clock, battery storage, hybrid energy contracts, and transmission infrastructure become critical.

For renewable developers, the mining sector isn’t just a customer, it’s the anchor that makes the business case for significant investment.

The Grid Will Need to Keep Up

The report also quantifies the additional power capacity that the mining sector will require — and the numbers are significant. By 2033, mining will need up to 931 MW of additional installed capacity relative to 2025 levels.

That’s a clear call to action for Chile’s electricity system..The transmission infrastructure to bring renewable energy from generation points to mine sites (and pump seawater up mountains) needs to expand significantly. That means opportunities in transmission infrastructure as well.

The report signals that the National Electric System (SEN) will need to continue expanding its generation and transmission infrastructure to meet mining demand.

Conclusion

Chilean copper mining’s electricity story over the next decade is one of structural growth, driven by geology (declining ore grades), hydrology (seawater dependence), and industrial transition (the shift toward sulfide-concentrate production). The good news is that this growing demand is increasingly being met with renewable energy, making Chile’s copper one of the lower-carbon commodities in global markets.

For mining companies, the challenge is operational efficiency in an increasingly energy-intensive environment. For technology and service providers, the opportunity lies in concentration processes, seawater infrastructure, and energy management. For energy companies, the mining sector remains Chile’s single largest electricity customer, and it will stay that way for the foreseeable future.

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