London, June 19, 2026, 15:07 BST
- Antofagasta was last at 4,012 pence, off 3.8% near its session low.
- The miner has proposed tying copper-concentrate processing charges to spot market indexes, according to industry reports.
- Copper production dropped 8% in the first quarter, but the company stuck to its full-year target of 650,000–700,000 tonnes.
Antofagasta shares dropped 3.8% to 4,012 pence at 15:01 BST on Friday, close to the session low and trailing the FTSE 100, which slipped 0.3%. The stock started the day at 4,113 pence.
Investors looked past falling copper prices after reports that the Chile-focused miner is pushing for better terms in concentrate sales. While the new terms wouldn’t boost output, Antofagasta could keep a bigger slice of copper’s value as tight supply continues.
Antofagasta has floated index-linked pricing to at least two Chinese smelters for shipments set for the second half of 2026 and the first half of 2027, Mining Reporters said. The company’s proposal would ditch fixed treatment and refining charges, or TC/RCs—which are what miners pay smelters to process copper concentrate. Instead, the fees would track spot-market assessments.
Material differences are in play. Shanghai Metals Market reported its imported copper-concentrate index dropped to a record low of minus $119.84 a tonne on June 12. With a negative charge, smelters end up paying above market just to get concentrate, instead of getting paid for their processing. That hands more leverage to miners.
Antofagasta set its 2026 annual processing charges at zero dollars a tonne and zero cents a pound after extended talks with a Chinese smelter. Spot levels now mean an indexed formula would give the miner a better deal than sticking with the fixed zero rate, assuming all else is the same.
Mining names were weak. Anglo American fell 2.2%, with Glencore off 1.5% and Rio Tinto down 1.1% in early London trading. U.S. copper futures gave up about 0.7% to $6.3423 a pound. That added to losses for copper-linked shares.
Chile’s central bank sent a mixed message this week. It trimmed its 2026 growth outlook to 1.0%–1.75% after a weak start to copper mining, but it lifted the average copper price projection for this year to $5.80 a pound. For Antofagasta, that means copper prices could help offset ongoing operating pressures in Chile.
Antofagasta reported first-quarter copper output of 143,000 tonnes, down 8% from last year as processing rates and grades slipped. Net cash costs came in at $1.08 a pound, dropping 30%, helped by higher gold and molybdenum credits. The miner is holding its full-year production target at 650,000 to 700,000 tonnes. Chief Executive Iván Arriagada said “the medium-term fundamentals for copper are compelling.” Antofagasta
The trade isn’t one-way. If more copper concentrate comes to market or smelters ease back, spot-linked deals could lose appeal. Meanwhile, speculative bets on copper are heavy. CME money managers sat on a net long of 71,127 contracts after amassing their biggest bullish position since early 2021, so sentiment could flip fast.
Shareholders see the planned price move as a way to lift margins, but it won’t fix lower volumes. The key thing management must prove now is quarter-on-quarter output gains and keeping Centinela and Los Pelambres on track. Copper staying firm is a tailwind, but results come down to actual delivery.
