Labor Tensions Escalate at Capstone Copper's Mantoverde Operation

Capstone Copper Corp. faces significant production disruptions as Union #2 at its Chilean Mantoverde Mine prepares to initiate strike action starting January 2, 2026. The union represents roughly half of Mantoverde’s workforce—equating to 22% of Capstone’s total employees—marking a critical labor development in the company’s operational landscape.

Production Impact and Operational Adjustments

The impending strike action will trigger a phased reduction in mining activities, with Capstone projecting output to stabilize at approximately 30% of standard production capacity throughout the dispute period. This operational constraint reflects the company’s commitment to maintaining safe mining protocols while navigating the labor standoff. The controlled approach aims to minimize sudden disruptions while preserving critical infrastructure and employee safety standards at the facility.

Negotiation Background and Company Position

Despite extensive collaborative discussions aimed at securing a fresh collective bargaining agreement with Union #2, the parties have yet to reach consensus. Capstone has consistently advocated for constructive engagement and adherence to established legal frameworks governing labor relations. The company continues signaling its readiness to participate in further dialogue to achieve a resolution.

Broader Labor Relations Context

The current strike action stands in contrast to Capstone’s success in negotiating three-year collective agreements with the other three unions operating at Mantoverde during 2025. These successful negotiations underscore the company’s broader strategy of fostering collaborative labor relationships and addressing workforce concerns through structured dialogue.

Management Commitment

Capstone reaffirmed its dedication to transparency, integrity, and upholding employee rights throughout the labor dispute. The company pledges ongoing cooperation with local authorities and remains committed to responsible mining practices that benefit both its workforce and surrounding Chilean communities. Resolution of the strike action remains a priority as Capstone seeks to normalize operations and resume full-capacity production.