Lundin hit by worker strike at Caserones copper mine

Lundin Mining (TSX: LUN) said on Monday it will gradually cut down activities at the Caserones copper mine after a small part of its workforce in Chile took action over a failed collective bargaining agreement.

The Canadian miner had tried to reach an agreement with one of three unions representing approximately 30% of Caserones employees, or 5% of the total workforce at the Caserones, prior to the strike.

In a press release Monday, Lundin said it remains willing to participate in meetings to reach a resolution with the union, and is committed to the “highest standards for integrity and transparency” and looks forward to returning its focus to safe and sustainable mining at Caserones.

In April, Caserones was able to successfully negotiate a new collective bargaining agreement with one of the other two unions, which also represents approximately 30% of the employees.

The company recently upped its stake in Caserones to 70% after exercising an option with Japan’s JX Nippon Mining & Metals. The mine represents one of Lundin’s trio of key assets in or around northern Chile, the other two being the 80%-owned Candelaria mine in the Atacama region and the Josemaría project in Argentina.

This year, the Caserones mine is expected to produce 120,000 to 130,000 tonnes of copper and 2,500 to 3,000 tonnes of molybdenum on a 100% ownership basis.