Chile Breaks up $900 Million Copper Smuggling Case, Stolen Copper Shipped to China

Chile successfully dismantled a massive transnational smuggling network that transported stolen copper worth approximately 917 million US dollars to China between 2020 and 2025.

The enforcement investigation named “Operation High Voltage” exposed a serious threat of organized crime faced by Chile, the world’s largest copper producer, especially after copper prices reached a historic high in January 2026, leading to an increase in related criminal activities.

This law enforcement operation involved 7 regions, with personnel from different departments conducting simultaneous raids on 49 properties, resulting in the arrest of 25 suspects, including key leaders and operational members of the organization.

Authorities seized 187 metric tons of copper at the search site, estimated at around 2.2 million US dollars in current market value, along with the discovery of 40 vehicles and 11 firearms.

According to a police statement, the organization not only engaged in physical theft but also fraudulently obtained over 58 billion Chilean pesos (approximately 65 million US dollars) in export value-added tax (VAT) refunds through complex export mechanisms.

The criminal group transported the stolen copper by trucks to the northern port of Iquique, where it was loaded into containers and shipped to China via sea.

The criminal group also caused severe damage to infrastructure. Thieves used heavy trucks to forcefully knock down power poles, stripping cables within a short period, leading to frequent power outages in local communities.

To conceal the origin of the stolen goods, they would burn the outer insulation of cables locally or melt the copper into untraceable ingots, sometimes mixing it with legally mined high-purity copper to evade inspection.

Prosecutor Rodrigo González pointed out that a single act of destruction could result in losses of up to 60 million pesos (around 67,000 US dollars).

The criminal organization is highly sophisticated, with a well-defined division of labor, including specialized theft teams, intermediaries, and fleets responsible for cross-border transportation.

Under the leadership of President José Antonio Kast’s new government, Chilean authorities have made combating such crimes a top priority, implementing centralized investigations, heat maps, and drone surveillance as enforcement measures.

However, law enforcement officials also admit facing daunting challenges. González warned that criminal organizations will quickly fill the void left by the dismantled group, as soaring copper prices drive an endless cycle of theft.

The seized copper worth 2.2 million US dollars represents only a fraction of the significant losses suffered by infrastructure and mining companies since 2026.