Chile's state-owned copper producer received a labor sanction linked to last summer's fatal collapse at the El Teniente underground mine, according to inspection records obtained through public-records requests. Three contractors whose employees were killed or injured in the event were hit with larger fines, reflecting Chile's legal division of responsibilities for subcontracted work.
The seismic event, recorded around magnitude 4.3 on July 31, produced a rock burst that led to a collapse in sections of the sprawling mine complex, resulting in the deaths of six contract workers and injuries to others. The incident prompted an immediate halt to all underground activity at El Teniente as rescue, inspection and safety operations were carried out.
Sanctions and the split-liability framework
The inspection files show the three contractors received combined penalties equivalent to about $87,000, while the fine levied against the principal company was roughly $20,000. That disparity aligns with Chile's labor code, under which contractors are directly accountable as employers for many operational duties - including accident reporting, risk assessment and worker assignment - even as a principal company can be sanctioned for overall safety failures.
Labor inspectors identified multiple breaches in the aftermath of the collapse. In one case they concluded the miner lacked a complete, written procedure that explained how seismic alerts were to be used in decisions about stopping or restricting work. Another record indicates regulators found workers entering or preparing to enter underground areas while a mine-wide suspension was still in force, a violation for which Codelco was cited.
Chile's labor rules cap fines for serious or fatal-accident violations at up to 150 UTM, an inflation-linked tax unit that converts to roughly $11,000 at current values, per infraction. The files note previous enforcement history where regulators imposed larger penalties in other cases, but labor advocates and safety specialists have previously questioned whether these monetary levels deter major employers effectively.
Contractor findings and individual penalties
Several of the contractors cited received multiple criticisms in the inspection records. A Strabag subsidiary operating under the Zublin name was penalized for failing to report a worker's death within the required 24-hour window. Inspectors found the company had knowledge of the fatality within two hours but did not notify labor authorities until the following evening, a delay regulators said hindered the immediate implementation of emergency protections for remaining personnel.
A business unit of Chilean construction firm SalfaCorp was also sanctioned after one of its workers died in the Andesita sector of the mine. Inspectors faulted the unit for late reporting of the fatality in addition to other violations, and concluded that the firm's risk assessment did not adequately consider seismic hazards, and that it failed to do enough to preserve workers' safety.
Constructora Gardilcic, an unlisted contractor whose employees were killed and injured in the Recursos Norte area, was likewise fined. Inspectors cited late accident reporting, delays in filing injury reports and weak safety planning. The regulator found that Gardilcic did not sufficiently account for the possibility of violent rock bursts outside designated danger zones and assigned some workers to tasks for which they were not authorized.
Operational and production implications
The rock burst and the resulting suspension of underground operations carried a meaningful production cost for the state miner. Company statements have attributed a reduction in copper output amounting to tens of thousands of metric tons to the shutdown at El Teniente and to a protracted, phased restart of underground activity. This disruption also affected shipments during a period of tight global supply.
Following the incident, the company said it had enhanced safety procedures for resuming work at El Teniente. Those measures included introducing safety briefings at the start of shifts, improving underground communications, increasing checks on the locations of workers and reviewing personal protective equipment. The miner also said an independent panel, led by a former mining company CEO, had been appointed to examine the cause of the accident and to determine whether broader management or workplace issues contributed to the event.
Administrative and legal follow-up
The labor ministry notified the miner of its fine and the company has appealed that sanction. Codelco also said there is an ongoing legal proceeding connected to the reported oversight of worker entry while the mine-wide suspension was in effect, and that it is awaiting a decision from authorities.
In corporate personnel changes connected to the mine's safety record, the miner previously announced that its El Teniente mine manager would leave the role in August. In February it said three senior executives had departed after an internal audit identified inconsistencies and concealment related to a prior rock burst at the mine several years earlier.
Outlook and ongoing restrictions
Codelco has indicated the areas most affected by the rock burst will remain subject to tight controls while criminal, regulatory and technical inquiries proceed. The company has committed to a gradual, regulator-approved restart, leaving uncertainty about when the entire underground operation will return to normal production levels.
Summary: Labor inspection records obtained through public-records requests show Codelco and three contractors were fined after a July seismic event at the El Teniente mine killed six contract workers and injured others. Contractors received larger combined penalties than the miner, reflecting Chile's subcontractor liability rules. Inspectors cited failures in accident reporting, seismic risk assessment and control of worker entry during a suspension. Codelco says it has appealed its fine and has implemented strengthened safety procedures while investigations continue.