Lundin Mining Provides Further Update on Chile Operations Following Severe Winter Storm
Lundin’s Caserones outage extends to two to three weeks, shrinking the margin for error while maintaining its production guidance.
Lundin Mining Corporation provided an update on July 27 regarding the impact of a winter storm in Chile. Caserones has been without power since July 18 following damage to two powerline towers. The company now expects full power restoration and a gradual restart to take two to three weeks, a timeline that was not specified in the July 21 update. Meanwhile, Candelaria’s mill continued operating on stockpiles, and mining has returned to full capacity. The release focuses on operational status and does not reiterate that full-year production guidance is maintained.
Lundin Mining Corporation’s latest update regarding its Caserones operation reveals a full outage lasting two to three weeks, a duration significantly longer than the short-term suspension implied by the company’s July 21 release. With Caserones producing approximately 11,000 metric tons of copper per month based on 130,000 to 140,000 metric tons of annual guidance, a three-week shutdown equates to a loss of roughly 7,000 to 8,000 metric tons of copper, representing about 5% to 6% of the mine’s annual guidance.
The company did not explicitly reaffirm its full-year production target in the release, a notable omission given that weather disruptions were previously stated to be factored into guidance. This prolonged outage may erode the buffer previously assumed in those projections. No changes to the financial outlook were provided; however, first-quarter financials showed net cash of $249 million before the $215 million acquisition of Los Helados, leaving a modest financial buffer.
Lundin Mining Corporation (LUN) operates as a pure-play copper producer with three active mines: Candelaria (80% ownership, Chile), Caserones (75% ownership following a recent acquisition), and Chapada (100% ownership, Brazil). The company also holds a 50% interest in the Vicuña project (Filo del Sol/Josemaria) alongside BHP, which targets a long-term production rate of more than 500 kt Cu/yr. Additionally, Lundin Mining sold its Eagle nickel/copper mine in early 2026.