Strike Ends at Chile's Caserones Copper Mine Following Agreement

The strike at Chile's Caserones copper mine has come to an end after workers reached an agreement with Lundin Mining, the company that controls the mine. The one-week strike, which began in mid-August and involved about 30% of the mine’s workforce, concluded when the majority of union members accepted Lundin's new collective bargaining proposal.

During the strike, operations at the Caserones mine were running at approximately 50% capacity. With the resolution of the labor dispute, Lundin Mining has announced its intention to focus on swiftly resuming full operations.

Caserones is an open-pit mine known for producing high-quality copper concentrate, copper cathode, and molybdenum concentrate. The mine is a significant source of copper and molybdenum, crucial metals in various industrial applications.

Workers at Lundin's Caserones Mine in Chile Go on Strike Amid Labor Disputes

Workers at the Caserones copper mine in Chile, controlled by Canada-based Lundin Mining, have initiated a strike following unsuccessful employment negotiations. The strike, which began after talks between the company and one of the mine's unions broke down, involves 30% of the mine's workforce. Lundin Mining confirmed that operations at the mine will be "gradually reduced" as a result of the strike.

The workers are demanding a new collective bargaining agreement after the company had previously reached an agreement in April with only one of the two unions representing the workforce. The current labor dispute underscores the growing tensions within the mine, which has become a crucial asset for Lundin since it acquired a majority stake in July last year.

Caserones mine is a significant contributor to Lundin Mining's revenue, accounting for 31% of the company's $1.08 billion in revenues during the second quarter of this year. The mine is expected to produce between 124,000 and 135,000 metric tonnes of refined copper in 2024, making it a key component of Lundin's global operations.

Lundin Mining Adjusts Annual Copper and Zinc Production Guidance

Lundin Mining

Canada-based Lundin Mining has revised its full-year production guidance for copper and zinc, reflecting operational challenges and shifting market conditions. Despite a rise in third-quarter copper production, the company reported a decline in zinc output, prompting a recalibration of its production targets.

Copper Production Sees Mixed Results

Lundin Mining tightened its annual copper production guidance to 366,000-389,000t, down from the previous range of 366,000-400,000t. In the third quarter, Lundin achieved a copper output of 99,855t, an 11% increase year-on-year. This brought the total copper production for the first nine months of 2023 to 267,576t, a remarkable 27% rise compared to the same period last year.

Chile's Candelaria mine played a pivotal role, contributing 50,018t of copper in Q3, thanks to higher head grades. However, this increase was partially offset by disruptions at other assets:

Labour action in August at the Caserones mine in Chile.

A ground fall at the Eagle East mine in the U.S. during the second quarter.

Lower grades at the Neves-Corvo mine in Portugal.

These operational challenges led to a downward revision of production guidance at these sites.

Zinc and Nickel Production Declines

Lundin’s annual zinc production guidance was adjusted to 190,000-199,000t, reduced from the earlier projection of 195,000-215,000t. While output at Sweden's Zinkgruvan mine increased, it was counterbalanced by lower production at Neves-Corvo due to rehabilitation and development impacting mine sequencing. Refined zinc production in Q3 was down 6.4%, with 46,610t produced, bringing the year-to-date total to 139,758t, a 4% decrease compared to 2022.

Nickel production suffered a significant setback, plummeting nearly 80% year-on-year to 893t in the third quarter, largely due to reduced mining rates at Eagle East.

Molybdenum Production from Caserones Acquisition

Following the mid-July 2023 acquisition of the Caserones copper-molybdenum mine, Lundin began producing molybdenum. However, third-quarter output was 693t, approximately 37% lower than the same period last year.

These adjustments highlight Lundin Mining’s proactive approach to navigating operational hurdles while maintaining a focus on long-term growth and stability in a volatile commodities market.

Lundin Mining Achieves Record Copper and Zinc Output in 2024, Plans Zinc Exit in 2025

Lundin Mining

Lundin Mining, a Canada-based base metals producer, announced record-breaking copper and zinc production in 2024. Despite these achievements, the company plans to cease zinc production in 2025 following the sale of key assets.

Lundin’s Copper and Zinc Production Hits New Highs

Lundin Mining boosted copper production by 17.2% year-over-year, reaching an all-time high of 369,067 metric tons (t) in 2024. The surge was largely driven by an increased stake in the Caserones mine in Chile, where Lundin expanded its ownership from 51% to 70%, adding approximately 24,000 t/yr of copper.

The company also reported record zinc production, climbing 3.5% to 191,704t. However, rehabilitation and development work at the Neves-Corvo mine in Portugal affected sequencing, leading Lundin to revise its 2024 zinc production guidance downward.

In contrast, nickel output plummeted by 54.4%, dropping to 7,486t from the Eagle East mine in the U.S..

Lundin to Exit Zinc Production and Focus on Copper

Lundin is set to exit the zinc market in 2025 with the sale of its Neves-Corvo and Zinkgruvan mines to Boliden, a leading Swedish metals company. The deal is expected to close by mid-2025, marking Lundin's full withdrawal from zinc operations.

Moving forward, Lundin’s 2025 copper production guidance is set between 303,000-330,000t, excluding contributions from Neves-Corvo and Zinkgruvan. Nickel output is projected at 8,000-11,000t, with production at Eagle East gradually tapering over the next three years.

The company plans to invest $40 million in in-mine and near-mine exploration this year, reinforcing its long-term copper growth strategy.

Conclusion

Lundin Mining’s record-breaking copper and zinc output underscores its operational strength. However, its strategic pivot away from zinc highlights a renewed focus on copper. With major investments in exploration and the Caserones mine expansion, Lundin aims to solidify its position in the global copper market.