Strike at Mantoverde Mine Intensifies
An ongoing labor dispute at the Mantoverde copper-gold mine in Chile's Atacama region has significantly escalated, with striking union members taking control of the mine's critical desalination plant. The strike, which began on January 2, 2026, by Union #2, representing over 640 workers, has now directly impacted the mine's water infrastructure, leading to a halt in copper production.
Desalination Plant Seized, Water Supply Interrupted
The escalation occurred on the evening of January 18, 2026, when individuals entered the desalination plant facilities, located approximately 40 kilometers (25 miles) from the main mine site. These individuals interfered with the plant's electrical system, resulting in a complete interruption of the water supply to the Mantoverde operations. Striking union members are currently preventing access and the restart of operations at the facility.
The Mantoverde mine, jointly owned by Capstone Copper Corp. (70%) and Mitsubishi Materials Corp. (30%), relies entirely on desalinated seawater due to its location in the arid Atacama Desert.
Production Halted, Market Impact Expected
The disruption to the water supply has had immediate consequences for the mine's output. Sulphide operations have been temporarily halted. While on-site water reserves are being utilized for essential services, oxide operations, which were expected to continue until January 23, 2026, face an imminent shutdown if water supply is not restored. The mine was projected to produce between 29,000 to 32,000 metric tons of copper cathodes in 2025.
This development is expected to further tighten the global copper market, which is already sensitive to supply disruptions. Copper prices have reportedly ticked up following news of the strike's escalation. A prolonged shutdown could have broader economic impacts, affecting industries worldwide that rely on copper for manufacturing electronic devices, electric vehicles, and solar systems.
Company Seeks Judicial Support Amidst Ongoing Negotiations
Capstone Copper Corp. has publicly stated its willingness to engage in discussions with Union #2 to find a resolution to the conflict. However, the company is also actively seeking judicial support to regain access to the desalination plant and restore operations. The union's demands include wage increases and bonuses, and they have also alleged discriminatory treatment during negotiation processes, accusing the company of attempting to weaken the strike through individual benefits.
5 Comments
Bermudez
These union tactics are extreme and will only hurt the Chilean economy. Get back to the table!
Africa
It's crucial for the company to address the union's claims of discriminatory treatment, but the union's actions risk alienating the very public whose support they might need against a multinational corporation.
Habibi
The impact on global copper markets is concerning, yet we must also consider the long-term sustainability of labor practices if we want stable supply chains in the future.
Coccinella
The company is willing to negotiate. This illegal plant seizure shows a lack of good faith by the union.
KittyKat
This copper is vital for global industries. Such disruptions have far-reaching negative consequences.