Compania Minera Antamina said on Tuesday it had suspended operations as a precaution after a worker from its operations area died in an accident at the Yanacancha facilities of the mine in Peru’s Ancash region. The company launched an investigation and is coordinating with the relevant authorities. A source close to the company told Reuters there was no timetable yet for restarting operations while the investigation is underway.
Shanghai Metals Market, reporting the same company confirmation on October 28, noted the statement did not disclose the scope or duration of the stoppage, or whether mining, concentration or molybdenum recovery was interrupted. On the evidence published so far this is a potential supply risk, not a confirmed production loss, and no output figure should be attached to the halt until the company or the owners quantify one.
Antamina is one of the largest copper, silver and zinc mines in the world and also produces molybdenum concentrates. Its shareholders are BHP, Glencore, Teck Resources and Mitsubishi Corporation, which spreads any extended outage across four separate producer portfolios. Peru is the world’s third largest copper producer, and Reuters noted Antamina’s output fell 9 percent last year after another fatal accident at the site, with copper output recovering this year before the latest halt.
The investment question is duration. A short precautionary stoppage for investigation is a safety event with limited market effect. A stoppage that extends while regulators review the Yanacancha operation would tighten copper and zinc concentrate availability from one of the few mines large enough to move balances, at a moment when copper miners rose 3.89 percent on the day and copper held at $6.64 a pound in the market tables. The restart statement, and any regulator conditions attached to it, is the next fact to watch.