Can Capstone Keep Production on Track Despite Ongoing Strike in Chile?
Source: Kapitales Research
Highlights:
Capstone Copper Corp has resumed operations at its Mantoverde mine in Chile, running at 50% to 75% capacity, at the time of writing.
The ongoing strike by Union #2, representing about 22% of the workforce, continues to limit full production.
Despite disruptions, Mantoverde is still expected to produce around 101,000 tonnes of copper in 2026, within company guidance.
Operations Resume, But at Reduced Capacity
Capstone Copper Corp (ASX: CSC) has resumed operations at its Mantoverde copper mine in Chile, even as a labour strike continues to limit production. The company confirmed that the mine is currently operating at 50% to 75% of normal capacity, at the time of writing, after failing to reach a resolution with one of its worker unions. The strike, led by Union #2 — which represents around 22% of Mantoverde’s workforce — began on January 2 and has yet to be settled. Capstone relies heavily on Mantoverde, which contributes about 42% of its total copper output, making the disruption a major operational challenge.
Why the Strike Still Matters
Although Capstone regained access to a critical desalination plant over the weekend, negotiations with the union remain stalled. The desalination facility is essential for supplying water to the mine, and its temporary shutdown earlier this month forced the company to scale back operations significantly. The dispute escalated following a January 18 incident, when individuals allegedly entered the plant and interfered with electrical systems, cutting water supply to the site. While operations have since resumed, Capstone had earlier warned output could drop to as low as one-third of normal levels during the strike.
Despite these setbacks, analysts remain cautiously optimistic. Mantoverde is expected to produce around 101,000 tonnes of copper in 2026, still within the company’s guidance range of 97,000 to 112,000 tonnes, at the time of writing.
Market Reaction and What’s Next
Investors appeared encouraged by the partial restart. Capstone’s Toronto-listed shares rose about 5% to $15.84, giving the company a market capitalisation of roughly $12 billion (US$8.8 billion), at the time of writing. Mantoverde, which is 30% owned by Mitsubishi Materials, remains one of Capstone’s core Chilean assets. The company said it is still open to discussions and remains committed to reaching an agreement with Union #2. For now, Capstone is walking a fine line — keeping production alive while managing labour tensions that could shape its performance for the rest of the year.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
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Can Capstone Keep Production on Track Despite Ongoing Strike in Chile?
Highlights:
Operations Resume, But at Reduced Capacity
Capstone Copper Corp (ASX: CSC) has resumed operations at its Mantoverde copper mine in Chile, even as a labour strike continues to limit production. The company confirmed that the mine is currently operating at 50% to 75% of normal capacity, at the time of writing, after failing to reach a resolution with one of its worker unions. The strike, led by Union #2 — which represents around 22% of Mantoverde’s workforce — began on January 2 and has yet to be settled. Capstone relies heavily on Mantoverde, which contributes about 42% of its total copper output, making the disruption a major operational challenge.
Why the Strike Still Matters
Although Capstone regained access to a critical desalination plant over the weekend, negotiations with the union remain stalled. The desalination facility is essential for supplying water to the mine, and its temporary shutdown earlier this month forced the company to scale back operations significantly. The dispute escalated following a January 18 incident, when individuals allegedly entered the plant and interfered with electrical systems, cutting water supply to the site. While operations have since resumed, Capstone had earlier warned output could drop to as low as one-third of normal levels during the strike.
Despite these setbacks, analysts remain cautiously optimistic. Mantoverde is expected to produce around 101,000 tonnes of copper in 2026, still within the company’s guidance range of 97,000 to 112,000 tonnes, at the time of writing.
Market Reaction and What’s Next
Investors appeared encouraged by the partial restart. Capstone’s Toronto-listed shares rose about 5% to $15.84, giving the company a market capitalisation of roughly $12 billion (US$8.8 billion), at the time of writing. Mantoverde, which is 30% owned by Mitsubishi Materials, remains one of Capstone’s core Chilean assets. The company said it is still open to discussions and remains committed to reaching an agreement with Union #2. For now, Capstone is walking a fine line — keeping production alive while managing labour tensions that could shape its performance for the rest of the year.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au