Mediation with the Candelaria AOS Union has failed and the 550 workers who are affiliated with the union at the Candelaria mine, in Chile, will down tools on Tuesday.
This is the second union that is downing tools, with the Candelaria Mine Workers Union continuing with its labour action, which started on October 8.
As a result, Toronto-listed Lundin Mining announced on Sunday that it would temporarily suspend operations at Candelaria and it withdrew the 2020 production, cash cost and capital cost guidance for the operation.
The previous collective agreement with the Candelaria AOS Union expired on October 5, after the union was granted a special extension of the agreement by the Labour Authority, which was set to expire on September 30. Candelaria and the union subsequently entered into a mediation process.
Lundin Mining will issue further statements as appropriate.