A halt at Chile’s CAP Group subsidiary may cost the mining and steelmaking company millions of dollars per week, a local bank estimated.
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.
Chilean bank Banchile estimated the blockades could cost the company $15 million per week. The estimate considers prices for the key products, including iron ore, which could have been exported through CAP Group’s Port of Guacolda II. It also assumes costs to mitigate the issue.
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.