Early start to copper labor negotiations will mitigate supply risk – Antofagasta’s Arriagada

Early starts to the slew of labor negotiations due at Chilean copper mines this year could mitigate the risks to supply, Antofagasta chief executive officer Iván Arriagada said today.

Arriagada added that he was positive of the company’s own negotiations with miners at its Los Pelambres project.

“What we’ve seen, which is positive, is that many companies have advanced negotiations, which has given more time to close negotiations [with no strikes],” Arriagada said.

“I think we will continue to see that pattern going forward and I think that will mitigate production issues in Chile,” he added.

The London Metal Exchange three-month copper prices gained over $7,200 per tonne in December on expectations of supply disruptions this year. 2.5 million tonnes or 43% of copper output from the world’s top producer – Chile – is at risk this year.

But miners have tried to limit output losses by starting negotiations early; Antofagasta, which has never experienced a strike before, has already agreed early labor contract settlements with the plant union at Los Pelambres as well as workers at its Centinela and Zaldívar mines. Arriagada was positive the company will keep its 100% record on no strikes this time around.

“We have a good track record of labor negations; we are expecting to forge some agreement with them,” Arriagada said in a call with reporters.

Mine workers at Los Pelambres rejected Antofagasta’s new contract offer on Friday last week, triggering a mediation process with the Chilean government, which is currently underway and should last between one and two weeks.

Arriagada, who oversaw a 59.1% profit increase at Antofagasta last year in line with higher copper prices was hopeful of an early settlement, but is keeping an eye on cash costs, which rose 4.2% in 2017.

“Our aim is to have a fair outcome so we are able to provide a satisfactory contract to the workers but at the same time focus on the sustainability of our business in the long term,” Arriagada said.

“We need to keep competitive and have some cost pressures, so we need to balance with cost competitiveness, which is key to our company going forward,” he added.

Los Pelambres, which is Antofagasta’s largest copper mine, produced 368,000 tonnes of copper in 2016.

The Metal Bulletin’s copper concentrate treatment and refining charge index dropped to a multi-year low of $68.80 per tonne / 6.88 cents per lb in February while traders aggressively bid for tonnes, expecting a mined copper deficit later this year.

What to read next
Following an initial consultation with the market, Fastmarkets is proposing to:  The new specifications would be as follows, with amendments in italics: MB-CU-0002 Copper grade 1 cathode premium, ddp Midwest US, US cents/lb Quality: Grade A 99.9935% min copper cathode conforming to LME specifications BS EN 1978:2022 – Cu-CATH-1 or Grade 1 Electrolytic Copper Cathode ATSM B1115-10 Quantity: Min […]
Fastmarkets’ 2025 outlook for key raw materials and ingredients used in the production and distribution of fast-moving consumer goods.
Vale Base Metals plans to boost annual copper production to 700,000 tonnes by 2035, aiming to become a top-five global producer of nickel and copper. CEO Shaun Usmar highlights a focus on productivity, cost optimization and sustainable growth. With strong assets in Canada and Brazil, Vale is well-positioned to meet rising global demand.
Fastmarkets has corrected its fob Australia alumina index, which was published incorrectly on Monday June 2 and Tuesday June 3 due to a back-end calculation error. Fastmarkets has also corrected all the related inferred indices. On June 2 the following prices were published incorrectly: Fastmarkets’ MB-ALU-0002 Alumina index, fob Australia, was published in error as $375.59 per […]
Mexico’s strategic role in automotive nearshoring is fueling demand for recycled aluminium, with investment in scrap-intensive sectors boosting its non-ferrous secondary markets. Despite tariff uncertainties, USMCA compliance and EV production growth continue to attract global manufacturers.
Goldcorp founder Rob McEwen is back in the spotlight with a bold bet on copper in Argentina. The $2.5 billion Los Azules project, set to become Argentina’s first major copper mine in over 30 years, is reshaping the country’s mining industry while raising sustainability standards. Positioned as a key player in addressing a global copper shortage, the project highlights innovation, persistence and a commitment to meeting the growing demand from global electrification.