More than 700 workers at Antofagasta Plc’s (LON: ANTO) Centinela mine in Chile began a strike on Wednesday, further tightening copper supply in the world’s top copper-producing nation. The walkout started after mediation failed to resolve a wage dispute, according to the Minera Esperanza and Distrito Centinela unions. The striking employees make up 22% of Centinela’s direct workforce, and the unions warned that the stoppage will restrict operations.
Antofagasta said it is “willing to continue discussions with their representatives in order to reach an agreement that takes into account the interests of both parties.” The key issue is the pay divide among employees performing the same jobs but belonging to different unions. The unions said Antofagasta rejected a proposed mechanism to eliminate these disparities without offering an alternative.
The dispute adds to growing labor tensions in Chile’s copper industry, with prices near record highs and miners facing weather-related and operational setbacks. Supervisors at BHP’s (ASX, LON: BHP) Escondida, the world’s largest copper mine, are also in government-mediated talks to avoid a strike.
Despite the walkout, Antofagasta said it does not expect the disruption to alter its production outlook. However, a prolonged stoppage could tighten an already constrained copper market, especially if labor disputes spread or coincide with further operational problems at major Chilean mines. Benchmark three-month copper on the London Metal Exchange was down 0.1% at $14,405.50 per tonne by 0950 GMT, though the metal has gained about 16% this year.