Lundin keeps forecast despite Chile winter storm shutting Caserones

Lundin Mining (TSX: LUN) said a severe winter storm in northern Chile has temporarily shut its Caserones copper-molybdenum mine and disrupted operations at the Candelaria complex, but the company expects the interruptions will be brief enough to meet its 2026 production outlook.

The Vancouver-based company continues to forecast production of 135,000 to 145,000 tonnes of copper and 80,000 to 90,000 oz. of gold from Candelaria this year, along with 130,000 to 140,000 tonnes of copper and 2,000 to 3,000 tonnes of molybdenum from Caserones, according to a statement issued Tuesday.

Mining at Candelaria has been slowed by heavy rainfall, although the mill continues to operate using ore stockpiles. Caserones has been idled since July 18 after heavy snowfall cut road access and knocked out site power. Backup generators are supporting critical operations while crews work to restore electricity and reopen access roads.

"The safety of our employees, contractors, nearby communities and environment remains our top priority," the company said. "We continue to follow established protocols at both operations in response to this event and have been collaborating with first responders and local authorities to support communities in the region."

Atacama Region

The storm swept across Chile's Atacama Region with flooding, heavy rain and unusually heavy snowfall, affecting some of the country's largest copper operations. Weather-related disruptions are built into Lundin’s annual operating plans for Caserones and the current interruption is not expected to affect full-year output, the company said.

Forecasts indicate rainfall should ease over the next one to two days, while any additional weather systems later this week are expected to be less severe.

Shares in Lundin Mining have fallen 3.3% over the past week to $34.15 apiece in Toronto on Tuesday morning, valuing the company at $29.2 billion. 

Lundin acquired a majority stake in Caserones in 2023. It increased its ownership to 70% in April, strengthening its position in Chile alongside the Candelaria copper-gold complex near Copiapó.

Together, the two operations are expected to produce as much as 285,000 tonnes of copper this year, making Chile the company's largest source of the red metal.