Antofagasta Centinela Mine Strike Adds Copper Supply Risk
Labour unrest at a major Chilean mine compounds concerns over global metal availability as copper trades near record levels.
Copper prices recovered on Wednesday as more than 700 workers began a strike at Antofagasta Plc’s Centinela mine in Chile, adding another supply threat in the world’s largest copper-producing nation. Benchmark three-month copper on the London Metal Exchange was down 0.1% at $14,405.50 per tonne by 0950 GMT, according to Mining.com. The metal has gained about 16% this year, with tight supply helping support prices despite a stronger dollar.
The walkout started at 8 a.m. local time after mediation overseen by Chile’s Labour Inspectorate failed to resolve the wage dispute, according to the Minera Esperanza and Distrito Centinela unions. The striking employees represent 22% of Centinela’s direct workforce and the stoppage will restrict operations, the unions noted. Antofagasta stated it was willing to continue discussions with employee representatives to reach an agreement.
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Labour Discontent and Market Impact
The dispute adds to labour tensions across Chile’s copper industry as prices hover near record levels and miners contend with weather-related and operational setbacks. Supervisors at BHP’s Escondida, the world’s largest copper mine, are also in government-mediated talks aimed at averting a strike. A key sticking point at Centinela is differences in pay and benefits among employees performing the same jobs but belonging to different unions. The unions reported that Antofagasta rejected a proposed mechanism to eliminate the disparities without offering an alternative.
The stoppage is the first strike at Centinela, one of Antofagasta’s four mining operations in Chile, and only the second in the company’s history. Centinela produced 240,400 metric tons of copper last year. Despite the walkout, Antofagasta stated that it does not expect the disruption to alter its production outlook.
Key facts
- More than 700 workers initiated a strike at Antofagasta Plc’s Centinela mine in Chile.
- Striking employees represent 22% of the mine's direct workforce.
- Benchmark three-month copper traded at $14,405.50 per tonne on the London Metal Exchange.
- Centinela produced 240,400 metric tons of copper last year.
Source: mining.com
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