The first Quantum resumes the production of Cobre Las Cruces Copper Mine in Spain

SMM Morning Meeting Summary: LME copper: Opened at $14,645.5/mt, peaked at $14,657/mt, bottomed at $14,549/mt, and closed at $14,555.5/mt, down 0.45%. Trading volume was 11,400 lots, with open interest at 264,000 lots, an increase of 2,818 lots from the previous trading day, driven by bearish position building. The most-traded SHFE copper 2611 contract: Opened at 110,950 yuan/mt, peaked at 111,020 yuan/mt, bottomed at 110,610 yuan/mt, and closed at 110,730 yuan/mt, down 0.15%. Trading volume was 16,300 lots, with open interest at 195,000 lots, a decrease of 922 lots from the previous trading day, driven by bullish position reduction.

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.