Chile’s Sierra Gorda reaches early labor deal with three unions through 2029

The KGHM-controlled copper mine in northern Chile signed early collective agreements with three labor groups covering more than 1,600 workers, extending labor stability at the operation until 2029.

Sierra Gorda, the Chilean copper mine controlled by Poland’s KGHM and jointly owned with South32, has reached an early collective labor agreement with three unions, extending labor stability at the operation through 2029.

According to the company, the new agreements apply to more than 1,600 employees across two workers’ unions and one supervisors’ union. The mine did not disclose the financial terms of the contracts.

The deal adds to Sierra Gorda’s labor track record after more than a decade of operations without strikes, according to the company’s statement. That operating history has become a notable feature of the mine’s labor relations in Chile’s copper sector, where contract negotiations are closely watched by the market. 

Sierra Gorda extends labor stability as copper output remains in focus

Sierra Gorda produced 165,313 tonnes of copper in 2025, according to the figures provided in the report, underscoring the mine’s relevance within KGHM’s international asset base. KGHM describes Sierra Gorda as its main asset in the Americas.

The operation has been in commercial production since July 2015 and is located in Chile’s Antofagasta region, around 60 kilometres southwest of Calama. KGHM holds 55% of the joint venture, while South32 owns the remaining 45%.

The early agreement comes as labor negotiations across Chilean mining remain a key issue for producers seeking operational continuity and cost predictability. In Sierra Gorda’s case, the company’s decision to secure multi-year agreements ahead of time suggests an emphasis on workforce stability at a long-life copper asset. 

KGHM maintains focus on Chilean copper operations

For KGHM, one of the world’s major copper and silver producers, Sierra Gorda remains central to its international strategy. Recent company materials continue to highlight the Chilean mine as a cornerstone of its operations outside Poland.

With the new labor agreements in place until 2029, Sierra Gorda strengthens its operational outlook at a time when copper producers are balancing production targets, labor relations and long-term market demand tied to electrification and energy transition trends.