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Capstone Copper Corp. has issued an update regarding labor discussions at its Mantoverde operation in Chile. The company announced that Union #2, which represents approximately 50% of the Mantoverde workforce, will initiate a strike starting on January 2. This union accounts for about 22% of the total employees at the mine, highlighting its significant representation among the staff.
Prior to the strike announcement, Capstone made earnest efforts to negotiate a new collective bargaining agreement with Union #2.
Despite these attempts, the failure to reach a consensus has led to the impending strike, which is expected to result in a gradual reduction of certain operations at the mine. During the strike period, however, Capstone plans to maintain operations at a capacity of up to 30% of normal production levels.
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Commitment to resolution
In light of this labor dispute, Capstone Copper remains committed to engaging in further discussions to resolve the situation amicably. The company has expressed its dedication to adhering to legal frameworks and respecting employee rights throughout the negotiation process. Capstone encourages the union to participate in constructive dialogue, while also ensuring that regulatory authorities are kept informed of all necessary information.
Capstone Copper emphasizes its core principles of integrity and transparency. The company is eager to refocus its efforts on ensuring safe and responsible mining practices at Mantoverde, which is essential not only for the workforce but also for the surrounding communities that benefit from the mine’s operations.
Recent achievements
This year, the Mantoverde mine successfully negotiated new three-year agreements with the other three unions representing its employees. This indicates a proactive approach by Capstone in fostering positive labor relations with the majority of its workforce.
In recent times, Capstone Copper contributed significantly to the Chilean economy, distributing $682 million in economic value across its operations, of which $136 million was allocated to employee wages and benefits. Currently, the Mantoverde operation employs approximately 1,270 individuals, including around 550 locals from the Atacama region, reflecting the company’s commitment to local employment.
Overview of Capstone Copper
Based in Vancouver, Canada, Capstone Copper Corp. is a mining company focused on copper production across the Americas. Its portfolio includes the Pinto Valley copper mine in Arizona, the Cozamin copper-silver mine in Mexico, and the Mantos Blancos copper-silver mine in Chile, alongside the Mantoverde copper-gold mine in the Atacama region. Furthermore, Capstone is advancing its growth strategy with projects such as the fully permitted Santo Domingo copper-iron-gold project, located approximately 35 kilometers northeast of Mantoverde.
The company aims to enhance its copper production capacity while implementing operational improvements through innovation and responsible practices. By focusing on profitability and careful management of capital, Capstone strives to create value for its stakeholders while positively impacting the lives of employees and local communities.
Forward-looking statements
This announcement may contain forward-looking statements that reflect the company’s expectations about future events. These statements are based on various assumptions and involve risks and uncertainties. Factors that may cause actual results to differ include challenges in resolving labor disputes, operational capacity during strikes, and fluctuations in commodity prices.
Capstone Copper does not guarantee that the outcomes discussed will be achieved and advises stakeholders to consider these risks when evaluating the company’s future prospects. As the situation evolves, further updates will be provided to keep all parties informed.
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