Workers have downed tools at Toronto-headquartered Lundin Mining’s (TSX:LUN) Caserone Mine in Chile after they were unable to reach a new collective bargaining agreement.
One of three unions representing about 30% of Caserones employees, or 5% of the mine’s total workforce, have gone on strike.
Lundin says prior to the strike action, Caserones attempted, in good faith, to reach an agreement for a new collective bargaining agreement with employees.
The company adds that as a result of the strike, it will now gradually reduce activities at the mine in a safe and orderly manner.
In April 2024, a new collective bargaining agreement was reached with one of the other two unions, which also represents about 30% of the employees.
Lundin says it remains willing to participate in meetings to reach a resolution and invites the union to engage in a constructive dialogue.
The $9.84 billion capitalisation miner owns and operates mines in Argentina, Brazil Chile, Portugal, Sweden and the US primarily producing copper, zinc, gold, and nickel.
Caserones is owned by Minera Lumina Copper Chile, in which Lundin is increasing its interest to 70% with JX Metals Corporation owning the remaining interest.
The open pit operation, located in Chile’s mining-heavy Atacama region, produces copper concentrate, copper cathode and molybdenum concentrate.
Lundin forecasts the operation will produce between 124,000 and 135,000 tonnes of copper and between 2,500 and 3,000 tonnes of molybdenum this year. This is an increase over its previous expectations of 120,000 to 130,000 tonnes of copper.
In the second quarter of 2024, Lundin booked quarterly revenue of US$1.1 billion largely as a result of stronger commodity prices and working capital inflows.
Total copper production for the quarter ended 30 June 2024 amounted to 79,708 tonnes.
The Caserone Mine contributed 29,775 tonnes to total copper production and 714 tonnes of molybdenum.
Lundin says copper and molybdenum concentrate production was impacted in the quarter by extended mill maintenance and weather events which reduced mining activities and limited tailings deposition.
Recoveries were also temporarily reduced by changes in the mining sequence and flotation circuit disruptions.
Write to Angela East at Mining.com.au
Images: Lundin Mining
