Antamina Copper Mine Resumes Operations Post-Fatal Accident: Navigating Regulatory and Labor Risks

The Antamina copper-zinc mine in Peru, a cornerstone of global copper supply, has resumed operations following a fatal accident in April 2024 and a subsequent 23-day labor strike in early 2025. However, the mine’s restart masks deeper risks tied to regulatory scrutiny, community disputes, and operational challenges that could impact investor returns.

The Accident and Its Immediate Impact

On April 22, 2024, a fatal incident at Antamina’s Yanacancha camp killed senior operations manager Edwin Colque Calisaya and injured another employee. The accident triggered an immediate full safety shutdown, halting operations for at least one day. While the mine resumed activity shortly after, the incident reignited scrutiny over safety protocols and environmental compliance at the site.

The mine’s operational disruption underscored its critical role in global supply chains: producing 435,000 metric tons of copper in 2023 (15% of Peru’s total output) and operating at a capacity of 145,000 tonnes per day. A prolonged shutdown could tighten copper concentrate supplies, as Antamina’s output feeds into markets via its 302km slurry pipeline to port.

Labor Disputes and Regulatory Headwinds in 2025

The mine faced further setbacks in April 2025, when a 23-day labor strike (April 3–26) over wage disputes and working conditions led to a full operational halt. The strike, resolved only after mediated negotiations, highlighted vulnerabilities in labor relations.

Beyond labor tensions, Antamina grapples with longstanding environmental grievances, including water contamination and glacial degradation claims dating to 2008. Peru’s government has yet to enforce penalties for these violations, but regulatory pressure is mounting. The EU’s new due diligence directives and U.S. Section 232 tariffs on certain imports have amplified scrutiny of mining operations’ environmental and social practices.

Production Outlook: A Glass Half Empty

Antamina’s 2025 production guidance reflects these challenges. The mine’s owners—BHP (33.75%), Glencore (33.75%), Teck Resources (22.5%), and Mitsubishi (10%)—projected 80–90 thousand tonnes of copper in 2025, down from 96.1 thousand tonnes in 2024. Zinc output was guided to 95–105 thousand tonnes, slightly above 2024’s 60.3 thousand tonnes but still constrained by ore composition shifts favoring copper-only deposits.

The January 2025 deficit of 19,000 metric tons in Peru’s copper production further signals operational instability. Analysts attribute this to Antamina’s labor and regulatory disruptions, which contributed to a 5% drop in Q1 2025 copper output nationally.

Investment Risks and Opportunities

Risks:

1. ESG Compliance Costs: Antamina’s expansion plans, including a $2 billion project to extend operations to 2036, may face delays due to environmental litigation or regulatory delays.
2. Labor Volatility: Unions’ demands for higher wages and safer conditions could lead to recurring strikes.
3. Geopolitical Uncertainty: The U.S. tariffs and EU directives could disrupt supply chains and reduce demand for Peruvian copper.

Opportunities:

1. Copper Demand Surge: Global copper consumption is projected to grow 4.5% annually through 2030, driven by EV adoption and renewable infrastructure.
2. Antamina’s Scale: Its 863 million-tonne reserve base and low production costs ($1.2/lb copper in 2023) provide a competitive edge if operational stability is achieved.

Conclusion: A Cautionary Tale for Investors

Antamina’s restart post-accident signals resilience but underscores systemic risks. With 5% lower copper output in Q1 2025 and ongoing labor/environmental disputes, the mine’s performance hinges on resolving these challenges.

Investors in Antamina’s stakeholders—BHP, Glencore, etc.—should monitor:
- Regulatory developments in Peru, including penalties for past environmental violations.
- Labor negotiations to prevent future strikes.
- Copper price trends ().

While Antamina’s strategic importance to global copper supply remains intact, its path forward is fraught with ESG and operational hurdles. For now, caution prevails: the mine’s restart is a start, but stability requires more than just turning the lights back on.