Amerigo Resources Ltd. (TSX: ARG, OTCQX: ARREF) is pushing ahead with fresh tailings processing at its Minera Valle Central operation near Rancagua, Chile, after a temporary pause stemming from an emergency at El Teniente, the world’s largest underground copper mine. The restart comes on the heels of a significant disruption, one with consequences felt both in human terms and in daily operations and highlights how mining firms adapt to sudden challenges with a practical, hands-on approach.
With Chile’s National Geology and Mining Service and the Labour Directorate recently lifting their hold, El Teniente has resumed operations in eight of its twelve underground sectors. This restart is not total, but it’s a crucial first step on a path back to business-as-usual after a seismic event halted work entirely, following an incident that resulted in the deaths of six workers. As a result of the restart, MVC began receiving fresh tailings from El Teniente again on the night of August 10.
During the days when El Teniente was idle, Amerigo didn’t shut down its Chilean operation. While the supply of fresh tailings from Codelco’s mine was cut off, MVC carried on by processing historic tailings, tailings being the residual material left after copper is extracted. This approach allowed Amerigo to maintain production, albeit at a potentially reduced scale. Most mining companies facing such sudden disruptions don’t have the flexibility to pivot their workflows so quickly. Amerigo’s ability to keep processing, thanks to historic tailings, set it apart during the recent shutdown.
As of now, MVC is handling both the reestablished flow of fresh tailings and continuing its work on historic material. Amerigo’s management has made it clear that throughput from the fresh tailings will likely remain below initially forecast levels until El Teniente ramps up to its full, pre-event capacity. Aurora Davidson, Amerigo’s President and CEO, explained that the company is proactively boosting its efforts with historic tailings to compensate for lower fresh feed and offset potential production shortfalls. In her words, “To the extent possible, MVC will mitigate any production impacts by increasing the processing of historic tailings.” Management plans to release another update once the company has more data on how much fresh tailings El Teniente is sending to MVC in the coming days.
It’s worth noting that Minera Valle Central is a unique operation in the copper world. By processing both fresh and historic tailings, Amerigo exploits a resource that many consider little more than waste. The company’s long-term partnership with Codelco, Chile’s state-owned copper giant, gives Amerigo a reliable feedstock for its Rancagua plant. MVC’s ability to handle disruptions like the recent seismic shutdown is not just a matter of operational flexibility, it’s a differentiator in a sector shaped by unpredictable events and environmental challenges.
This situation is also a reminder of the sometimes invisible logistical webs that define global resource production. Copper supply disruptions are rarely local in effect. With copper prices and supply chains so tightly connected, even events at mines thousands of miles away can ripple through markets and manufacturers worldwide. The restart at El Teniente and the parallel resumption of fresh tailings processing at MVC may be seen as a small step back towards stability in copper output from one of the world’s most essential mining regions.
Amerigo’s experience over the past few weeks is instructive for anyone watching the mining industry: mines are sites of both opportunity and risk, and success depends on adapting rapidly, often in circumstances that are anything but ideal.
