Codelco copper mine blockade adds to supply concerns

Workers at Codelco’s Ministro Hales copper mine in northern Chile blocked access to the operation for about six hours on Monday in a dispute over unpaid bonuses following a serious workplace accident.

Union leaders and employees erected barricades and occupied the main entrances to the state-owned miner’s Ministro Hales Division in Calama, bringing production and vehicle movements to a standstill.

“Safety is at a standstill, and the workers are not receiving their bonuses as they should,” Alberto Muñoz, legislative director of the Federation of Copper Workers, told Cooperativa radio.

The disruption adds to labour unrest affecting major copper operations as demand for the metal grows from power grids, electric vehicles and data centres.

Safety dispute

A recent study by Santiago-based GEM Mining Consulting found that strikes, severe weather, accidents and geological problems put an average 5.2% of production at Chile’s largest copper mines at risk.

The firm’s first Production-at-Risk Index assessed 14 major copper operations across eight threats, with risk scores ranging from 2.6% to 9%. El Teniente ranked highest at 9%, followed by Los Pelambres at 8% and Escondida at 7.5%. Nine operations had at least one threat rated high.

The findings underscore the uncertainty surrounding mine production forecasts, which generally assume operations proceed as planned despite recurring disruptions from labour disputes, equipment failures and other operational challenges.

The dispute at Ministro Hales stems from a December 2025 accident in which a haul truck caught fire, leaving an operator with serious burns.

The incident forced 13 trucks and associated fleets out of service for several days, affecting bonus payments to workers. Union representatives allege that management is making employees bear the financial consequences of inadequate corporate safety practices.

Muñoz said union leaders began occupying the division’s gates at 6 a.m. He warned that protests could spread to Codelco’s Chuquicamata, Radomiro Tomic and Gabriela Mistral operations unless senior management addresses workers’ concerns.

The possibility of further blockades raises the stakes for Codelco, whose operations are central to Chile’s copper industry. Any escalation could affect production beyond Ministro Hales.

Wider disruptions

The Chilean protest comes as more than 1,200 workers at Teck Resources’ Highland Valley Copper mine in British Columbia, Canada’s largest open-pit copper mine, walked off the job on Saturday.

The operation has continued at reduced capacity, adding another potential constraint on copper supplies.

The strike also comes as Teck pursues its merger with Anglo American (LON: AAL), a combination expected to create one of the world’s five largest copper producers.