Operations have begun to resume on a partial basis at Lundin Mining’s (TSX: LUN) Candelaria operation, located in Chile, following the ratification of two collective agreements with local unions. Operations were previously shuttered in mid-October when multiple unions began strike action.
The company this morning announced that the Candelaria Supervisors and LMC Supervisors Unions, which collectively represent 230 employees, have ratified a new collective agreement with a 32 month term. This, combined with the ratification of an agreement with the Candelaria AOS Union on November 20, has lead to a partial restart of operations at the mine site.
Labour action however continues with the Candelaria Mine Workers Union, whom began strike action on October 8, 2020. That union represents approximately 330 employees at the facility, and remains as the last of five unions to enter a collective agreement with Lundin at Candelaria this year.
The labour action experienced by Lundin has resulted in the company being forced to pull production, cash cost and capital cost guidance for 2020 at the Candelaria operation, given that it was forced to shutter operations for a period of time. It is unclear at this time if new guidance will be issued for this year.
Lundin Mining last traded at $9.69 on the TSX.
Information for this briefing was found via Sedar and Lundin Mining. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
