Chilean mining company CAP Group said it was forced to halt activities at its Huasco pellet plant as well as shut down its Port of Guacolda II due to demonstrations.
The company told the Chilean securities exchange commission that workers and unions associated with Axxintus, which is part of Grupo Empresarial Ultramar, have blocked the roads that access three CAP Group sites. CAP Group said it isn’t involved nor has any interest or association with the demonstrations, which are related to the workers’ annual contract negotiations.
However, due to the blockades, CAP Group had to shut down its Huasco pellet unit, which is owned by its subsidiary Compañía Minera del Pacífico S.A. The blockades also affected its Port of Guacolda II.
Additionally, the company’s other subsidiary, Port Las Losas, is unable to load or unload cargos at the port. Both the Port of Guacolda II and the Port Las Losas are located in the Huasco region.
CAP Group said it had been using a railroad to transport key products from its Los Colorados mine to supply its Compañía Minera del Pacífico S.A pellet unit in Huasco. However, due to lack of safety for the company’s workers, the company said it can no longer use such a route.