Copper production halted at strike-hit Capstone mine in Chile

Production at a Capstone Copper Corp. mine in northern Chile has halted amid a nearly three-week labor strike, further tightening the global market.

The mining site is running on restricted water supply, leading to the suspension of processing operations, said union boss Eduardo Claveria. That’s as protesting workers block access to the site’s desalination plant, a company representative confirmed by text.

With no plans to resume wage talks, the standoff shows how copper’s record rally is straining labor relations. Workers are seeking a larger share of the windfall, while management tries to contain costs in a cyclical industry.

More than 600 union members at the open-pit copper and gold mine in Chile’s Atacama region downed tools on Jan. 2 after failing to reach a deal in collective bargaining.

Last week, Capstone said Mantoverde was operating at about 75% of normal capacity, more than it previously indicated. The mine, which has been expanding capacity, was budgeted to reach an annual production rate of 106,000 tons this year.

Capstone owns 70% of the asset, with Mitsubishi Corp. holding the remaining 30%. Striking workers account for 22% of the total workforce, including contractors, or roughly half of employees.

(By James Attwood)