Codelco and contractors fined for fatal mine accident
Chile fined Codelco and three contractors over a fatal 2025 mine collapse. Records reveal penalties for safety breaches and delayed reporting of worker deaths.
Labor authorities in Chile have issued fines against the state-owned miner Codelco and several private contractors following a fatal underground collapse at the El Teniente complex last year. The incident, which occurred at the world's largest underground Copper mine, resulted in the deaths of six contract workers and multiple injuries after a significant seismic event triggered a rock burst.
Inspection records obtained through public-records requests reveal a disparity in the financial penalties levied. While Codelco was fined approximately $20,000, the three contracting firms involved faced combined sanctions of roughly $87,000. This gap is attributed to the legal framework regarding subcontracted labor, where primary companies are penalized for systemic safety failures while contractors bear direct responsibility for reporting, risk assessment, and worker assignments.
Among the sanctioned contractors, Zublin, a subsidiary of the Austria-based STRABAG SE-BR, was penalized for failing to report a worker's death within the required 24-hour window. According to the inspection report:
Immediate reporting is critical to implement emergency safety measures to protect remaining workers.
SALFACORP SA also received sanctions after a fatality in the Andesita sector of the mine. Regulators determined that the company failed to report the accident immediately and that its internal risk assessments did not sufficiently account for seismic hazards. Additionally, the unlisted contractor Constructora Gardilcic was cited for late reporting, inadequate safety planning, and placing workers in roles for which they were not cleared.
Codelco's specific violations included a lack of written procedures for using seismic warnings to halt work and allowing personnel to enter underground areas while a mine-wide suspension was still in effect. In response to the findings, Codelco stated that its seismic alert system was active during the event and confirmed it has appealed the labor ministry's fine. The company has since implemented more rigorous safety briefings and improved underground communication systems.
The disaster has prompted an investigation by an independent panel led by a former chief executive of ANGLO AMERICAN PLC to determine if broader management failures contributed to the accident. The production impact of the collapse has been substantial, with the resulting shutdown and gradual restart cutting output by tens of thousands of metric tons during a period of constrained global supply.
While the penalties have been finalized, some safety advocates argue the current fine limits, which cap at roughly $11,000 per infraction, are insufficient. A previous legislative report noted:
It is essential to raise the size of fines in order to effectively deter companies from violating mining safety regulations.
Operations at the most affected areas of El Teniente remain under tight restrictions as criminal and regulatory investigations continue. Codelco has replaced several top executives at the mine following internal audits and continues to work toward a full, regulator-approved restart of the facility.
