A workers’ strike at Antofagasta’s Centinela copper mine in Chile could reduce the operation’s November copper production by around 50% if the work stoppage continues, according to union representatives.
The strike began on October 7 after two unions rejected further negotiations with Antofagasta Minerals following the failure of government-mediated talks to produce an agreement. The labour groups represent more than half of Centinela’s critical mine operators and more than 60% of equipment maintenance workers.
The unions said the initial operational impact is expected to worsen gradually because mining and mine-development activities have been affected, while a large volume of waste rock still needs to be removed. They expect the full effect of the strike to become more visible in November, when production could fall by as much as half.
Antofagasta has said it continues to maintain its production guidance despite the strike and declined to comment on the unions’ estimate of the potential November production impact.
The dispute centres on differences in pay and benefits between union groups. Labour representatives are seeking equivalent benefits for employees regardless of union affiliation, while Antofagasta has said bargaining schedules have been separated since 2020 and wage adjustments have been negotiated at different times.
The union estimate of a potential 50% decline in November production materially increases the supply significance of the Centinela strike compared with the initial work stoppage. However, the estimate has not been confirmed by Antofagasta, which continues to maintain its production guidance. The scale of any actual copper loss will therefore depend on the duration of the strike, the extent of disruption to mining and maintenance activities, and whether negotiations resume before November.
