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Antofagasta ( ANFGF ) says Trump's policies could help mining

investment

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Copper supply likely to be supported by demand from AI and

other

technology

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Antofagasta ( ANFGF ) says Chile well placed to avoid copper tariffs

By Fabian Cambero and Daina Beth Solomon

SANTIAGO, April 8 (Reuters) - The trade war stirred by

U.S. tariffs raises a risk for metal demand, the head of Chile's

Antofagasta ( ANFGF ) said, although he predicted AI and other

technology could offset any loss of traditional consumption

caused by economic weakness.

He also said President Donald Trump's policies could lead to

a more favourable environment for investment in mining.

Trump's announcement of tariffs last week, followed by

retaliation from China, has caused turmoil on financial markets

and sent copper prices plunging.

Antofagasta ( ANFGF ) CEO Ivan Arriagada said in an interview on the

sidelines of the CESCO copper conference in Santiago that he

expected supplies of copper, needed for construction and the

transition to a lower carbon economy, would remain in limited

supply.

That meant he was more concerned about the impact on the

wider economy of the trade war, which could ultimately reduce

copper demand, than the resilience of the copper market itself.

Should a global economic slowdown destroy demand for copper

from construction and infrastructure, Arriagada said he expected

use by data centers, renewable energy and AI to compensate.

Trump has yet to announce special measures for copper, but

his administration is looking into potential tariffs.

Arriagada said Chile, the world's biggest copper producer,

was in a good position to avoid U.S. tariffs as the United

States has a trade surplus with Chile, a free-trade partner that

provides more than half of U.S. copper imports.

London-listed Antofagasta ( ANFGF ) operates four copper mines in

Chile and is developing a mine in the United States. It targets

output of 660,000 to 700,000 metric tons this year, after

producing 664,000 tons last year.

Its Twin Metals copper and nickel mine project in Minnesota

needs to resolve a lawsuit over permitting, and then obtain the

necessary approvals.

"In the current environment, where there is a lot more

support for mining investment, it should be easier and should

happen," Arriagada said, although he added there was no sign yet

of progress.

As U.S. clients rushed to stockpile in many sectors ahead of

Trump's announcement last week, Antofagasta ( ANFGF ) sent only a small

additional amount of copper to the United States, Arriagada

said, without giving details.