BHP Group (ASX:BHP) says operations at its Escondida copper mine in Chile are gradually resuming after a fatal accident forced a temporary suspension earlier this week.
Activity at Escondida, the world’s largest copper mine, was halted on Wednesday after a worker was killed while carrying out maintenance work.
The accident involved a front-end loader, the union representing workers at the mine told Reuters at the time.
BHP says it “continues to assess the conditions for a gradual resumption of mine activities, taking into account workforce wellbeing, operational readiness, risk controls and applicable authority requirements”.
Investigations into the incident remain ongoing as the restart plan progresses.
In Chile, mining operations affected by a fatal accident typically require clearance from safety authorities before activities can resume.
Located in the Atacama Desert in northern Chile, Escondida is operated by BHP, which holds a 57.5% interest in the joint venture. Rio Tinto (ASX:RIO) owns a 30% stake, while Japan-based JECO holds the remaining 12.5%.
Copper supply remains tight
Escondida’s restart could ease some near-term supply concerns at a time when constrained mine production has supported copper prices.
On Friday, benchmark three-month copper on the London Metal Exchange edged higher to around US$14,783 ($21,040) a tonne, approaching the record high reached earlier this month.
UBS Group (NYSE:UBS) this week reiterated that global copper mine supply remains constrained, highlighting weaker-than-expected production in Chile amid weather-related disruptions.
Despite Escondida’s gradual restart, ongoing supply constraints continue to underpin the longer-term outlook for copper.
Write to Jackson Chen at Mining.com.au
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