Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Copper producer Antofagasta warns of bigger hit from Chile protests

Published 04/11/2019, 13:15
Updated 04/11/2019, 13:17
Copper producer Antofagasta warns of bigger hit from Chile protests

Copper producer Antofagasta warns of bigger hit from Chile protests

(Reuters) - Copper producer Antofagasta Plc (L:ANTO) on Monday doubled its production cut from Chile to about 10,000 tonnes, pointing to a bigger hit from the workers' protests, and said its mines in the South American country have resumed operations.

Two weeks ago, Antofagasta said the protests could cut its production for the year by about 5,000 tonnes, equivalent to less than 3% of third quarter output, due to delays in supplies and travel disruptions for workers.

The London-listed miner said it now expects annual copper production of 750,000 to 770,000 tonnes compared with a prior forecast of 750,000 to 790,000 tonnes.

The revised forecast also includes a loss of about 4,000 tonnes from worker strikes at its Antucoya mine that Antofagasta said have ended.

The company has four mines in Chile and employs about 19,000 people. Its flagship mine Los Pelambres is 240 km (150 miles) northeast of Santiago, the capital which has seen anti-government demonstrations, with protesters demanding an end to low wages and high living costs.

"It's not going to be just Anto. BHP at Escondida have been suffering some one-day strikes...," Peel Hunt analyst Peter Mallin-Jones said.

"BHP and Rio are going to be the most significant than others."

Last week, BHP (AX:BHP) said its Escondida copper mine, the world's largest, was operating at a "reduced rate" after union workers walked off the job for part of the day in solidarity with the anti-government protest movement.

In its quarterly update last month, Antofagasta said it was in talks with a new supervisors' union at Antucoya and were expected to conclude by the end of the year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.