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Capstone Copper restarts Mantoverde mine while strike drags on
Capstone Copper Corp resumed operations at its Mantoverde copper and gold mine in northern Chile, even as a strike by a labor union representing nearly 22% of its workforce continued, the Canadian miner said on Monday.
The company, in an Australian exchange filing dated February 1, reiterated it expects to continue operations at a level between 50% to 75% of normal production during the strike.
Shares of Capstone’s Australia-listed depositary receipts fell as much as 4.5% to A$15.810 on the day, their lowest level since January 23.
The decision to resume operations follows a Chilean court ruling last week authorizing the forced removal of striking workers from a desalination plant supplying water to the mine, a key resource for day-to-day operations.
The strike began in January after negotiations over new labor contracts with Union No. 2 of Mantoverde broke down. Unionized workers rejected the company’s latest payment offer, leading to the ongoing impasse.
Capstone said it remains open to further dialogue with the union as it seeks to resolve the dispute.
Union No. 2 at Capstone Copper’s Mantoverde mine is the largest labor union on site, representing around 645 workers, which corresponds to roughly 50% of the mine’s direct workforce. It is the union leading the strike.
The conflict centers on Mantoverde’s desalination plant on the coast, located about 40 kilometers (25 miles) from the mine.
The company reported that on the evening of January 18, individuals entered the desalination facility, interfering with the plant’s electrical system and causing an interruption in water supply.
The water shortage forced the mine to rely on on-site reserves, halt parts of its operations including sulphide processing, and warn further shutdowns could occur if the situation persisted.
Chile, the world’s top copper producer, has grappled with deepening droughts that have forced Santiago to consider unprecedented water rationing.
The shortages have intensified long‑standing tensions over water use as miners – traditionally dependent on continental sources like lakes, rivers and reservoirs – compete for supplies needed to power copper smelting.
In 2025, Mantoverde produced 62,308 tons of copper concentrate and 32,807 tons of copper cathodes, about 0.4% of global production.
Capstone owns a 70% stake in Mantoverde, with Japan’s Mitsubishi Materials holding the remaining 30%.
(By Kumar Tanishk; Editing by Diane Craft and Chris Reese)
Eldorado to buy Foran Mining for $2.8B amid copper push
Eldorado Gold (TSX: ELD) (NYSE: EGO) has agreed to buy fellow Canadian miner Foran Mining (TSX:FOM) (OTCQX:FMCXF) in a transaction that values the copper-focused developer at about C$3.8 billion ($2.8 billion).
The acquisition will expand Eldorado’s copper footprint while adding a second near-term growth project as demand for the metal rises alongside electrification and clean energy investment.
The deal brings Eldorado’s Skouries gold-copper project in Greece and Foran’s McIlvenna Bay copper project in Saskatchewan into one portfolio, both targeted for commercial production in mid-2026. Eldorado said the enlarged group could produce about 900,000 gold-equivalent ounces in 2027.
Once combined, the company’s asset base is expected to have roughly 77% exposure to gold and 15% to copper, with operating mines and development projects in Canada, Greece and Turkey.
Eldorado expects the merged business to generate about $2.1 billion in core profit and $1.5 billion in free cash flow in 2027. The miner also plans to increase exploration spending across the portfolio, including at Foran’s Tesla zone in Saskatchewan.
Deal insights
Under the terms of the agreement, Foran shareholders will receive 0.1128 Eldorado shares plus $0.01 per share, giving them about 24% of the combined company. The transaction is expected to close in the second quarter of 2026.
“This transaction gives McIlvenna Bay the scale and financial strength to fully realize its potential, including the ability to accelerate phased expansion opportunities over time,” Foran chief executive Dan Myerson said in the statement.
The combined company will remain headquartered in Vancouver under the Eldorado Gold name.
McIlvenna Bay is expected to become a cornerstone Canadian asset alongside Eldorado’s Lamaque Complex in Quebec, supporting long-term employment and economic activity in Saskatchewan and across Canada, the company said.
The project has been recognized by the federal government as a critical minerals development and referred to the new Major Projects Office as a project of national interest.
Both boards have unanimously approved the transaction, and shareholder votes are scheduled by April 14, the companies said.
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