Lundin Mining (TSX: LUN) has seen mediation talks break down with a union representing 550 employees at its Candelaria Mine in Chile. Talks have broken down, resulting in Lundin pulling any guidance associated with the operation.
As we previously reported, labour action began on October 8, with the company at the time identifying that the Candelaria Mine Workers Union, representing 330 employees, had commenced strikes. Now, the Candelaria AOS Union is able to commence strike operations beginning October 20, 2020 – meaning two separate unions representing roughly 880 employees are now striking.
Commenting on the strike action, Lundin stated that “illegal and violent actions promoted under the guise of the legal strike of the Mine Works Union, and the pending labour action of the Candelaria AOS Union, puts the the safety of our Candelaria workforce at risk.” As a result, Lundin is in the process of planning for a temporary suspension at the mine site, with only critical work remaining operational.
This in turn means that Lundin has pulled 2020 production, cash cost, and capital cost guidance for the Candelaria mine. The company notes that it contains a net debt position of $124 million, including cash of $222 million and roughly $575 million in available credit under a revolver.
A timeline for potential further developments was not provided.
Lundin Mining last traded at $7.76 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.
