Capstone Copper Corp (TSX:CS) (ASX:CSC) has resolved a labour dispute that cut production at its Mantoverde Operation in Chile. Union #2 ratified a three-year collective bargaining agreement on 5th February 2026, bringing an end to strike action that began on 2nd January.
The Vancouver-headquartered copper producer can now focus on returning to full capacity at the Atacama region mine. Operations continued at approximately 55% of normal levels during the disruption.
 
Aerial view of Mantoverde copper-gold mine in Chile’s Atacama region [Capstone Copper]
Five-Week Disruption Ends with Ratification
The strike involved about 50% of Mantoverde’s workforce, representing roughly 22% of the company’s total employee base. Capstone attempted good-faith negotiations before the strike commenced, but couldn’t reach terms until this week.
The new agreement secures labour peace for the next three years. This mirrors deals already signed with the mine’s three other unions during 2025.
Production impacts were managed through careful operational adjustments. The company maintained critical functions while respecting workers’ rights throughout the dispute.
Mantoverde’s Role in Capstone’s Portfolio
The Mantoverde mine sits 50 kilometres southeast of Chanaral in Chile’s copper-rich Atacama region. Capstone holds a 70% stake through its subsidiary Mantoverde S.A., with Mitsubishi Materials Corporation owning the remaining 30%.
Key facts about the operation:
- Employs approximately 1,270 people directly
- Total workforce including contractors reaches 2,940
- About 550 employees come from local Atacama communities
- Processes both oxide ore and sulphide concentrates
The operation recently completed a transformational expansion. The Mantoverde Development Project added sulphide processing capabilities through an $870 million concentrator that achieved commercial production in September 2024.
This expansion significantly boosted Capstone’s consolidated copper output. The company delivered record production of 224,764 tonnes in 2025, marking a 22% increase over 2024.
Economic Contribution to Chile
Capstone maintains strong ties to Chile’s mining sector and local communities. In 2024, the company distributed $682 million in economic value across its Chilean operations.
This included $136 million specifically for employee wages and benefits. The figure demonstrates the company’s substantial regional footprint.
The Atacama region benefits particularly from mining employment. With 550 local hires at Mantoverde alone, the operation provides critical jobs in a mining-dependent area.
Chile remains the world’s largest copper producer, accounting for roughly 27% of global supply. However, the country faces challenges, including declining ore grades, water scarcity, and periodic labour disruptions.
Broader Industry Context
The Mantoverde settlement comes as copper prices remain elevated amid strong demand from electric vehicles and renewable energy infrastructure. Copper traded above $9,700 per tonne through late 2025 and early 2026.
Labour disputes have impacted several major Chilean producers recently. The Democratic Republic of Congo’s Kamoa-Kakula mine faced production halts due to seismic activity, boosting demand for alternative suppliers like Capstone.
Global copper supply faces structural constraints. The International Energy Agency projects that demand from electrification and renewables will grow at 10.7% annually, with EV applications expanding 14.3% per year.
This supply-demand dynamic makes stable operations increasingly valuable. Companies that maintain production continuity gain market share during disruptions elsewhere.
Capstone’s Broader Operations
Beyond Mantoverde, Capstone operates three additional mines across the Americas:
Pinto Valley (Arizona, USA): Copper mine in an established mining district
Cozamin (Zacatecas, Mexico): Copper-silver underground operation
Mantos Blancos (Antofagasta, Chile): Copper-silver mine 45 kilometres northeast of Antofagasta
The company’s development pipeline includes the fully permitted Santo Domingo copper-iron-gold project. Located 35 kilometres northeast of Mantoverde, Santo Domingo could add significant future production capacity.
Capstone’s strategy focuses on operational improvements and disciplined capital allocation. The company aims to deliver profitability while maintaining responsible production standards across its portfolio.
Capstone Copper’s mining operations across the Americas [Capstone Copper]
Investor Implications
The labour settlement removes uncertainty around Mantoverde’s production outlook. Analysts had flagged the strike as a near-term risk to earnings guidance.
Capstone shares have performed strongly over the past year. The stock trades on the ASX under the ticker CSC and on the Toronto Stock Exchange as CS.
The company’s market capitalisation stands at around $15.1 billion as of early February 2026. Shares have gained approximately 39% over the past 12 months, outperforming broader market indices.
Seven analysts maintain ‘buy’ ratings on the stock with no sell recommendations. The consensus 12-month price target sits around $15.80, suggesting modest upside from current levels.
What’s Next for Mantoverde
Capstone’s immediate priority involves safely ramping operations back to full capacity. The company expects a gradual return to normal production levels over the coming weeks.
The three-year labour agreements across all four unions provide operational stability through 2028. This timeframe aligns with the company’s medium-term production guidance.
Mantoverde’s expanded processing capacity positions it as a cornerstone asset in Capstone’s portfolio. The operation should contribute meaningfully to the company’s target of becoming a top-tier copper producer.
Chile’s copper sector continues attracting investment despite periodic challenges. Infrastructure quality, skilled workforce availability, and geological prospectivity keep the country competitive globally.
For local communities in the Atacama region, the labour settlement preserves jobs and economic activity. Mining remains the economic backbone for many Chilean regions, making operational continuity critical.
