The full impact of a workers’ strike at Antofagasta’s (LSE:ANTO) Centinela copper mine in Chile is expected to be felt in November, when production could decrease by half, unions said on Thursday.
Labor groups launched a strike on Wednesday after government-mediated negotiations with management failed to produce a deal.
The unions said the initial strike impacts will gradually worsen due to the large amount of waste rock that will need to be removed.
Antofagasta previously said it would maintain its production guidance despite the strike.
It declined to comment on the union’s latest production estimates.
Labor representatives are pressing for all workers to receive the same benefits regardless of union affiliation.
Antofagasta argues that since 2020, bargaining schedules have been separated and wage increases have been negotiated at different times.
The unions represent more than half of Centinela’s critical mine operators and over 60% of equipment maintenance workers.
Global copper output is already constrained by operational disruptions, natural events and declining ore grades.
(Reporting by Fabian Cambero, Writing by Paolo Laudani, Editing by Daina Beth Solomon)
Main image: Antofagasta PLC
