La Era
Apr 15, 2026 · Updated 04:13 AM UTC
Business

Contractors bear brunt of fines following fatal El Teniente accident

Chile's Ministry of Labor has sanctioned Codelco and three contractors following a rockburst at the El Teniente division that claimed the lives of six workers.

Camila Fuentes

2 min read

Contractors bear brunt of fines following fatal El Teniente accident
Photo: reuters.com

The Ministry of Labor has issued fines to the state-owned copper giant Codelco and the companies Zublin, Salfacorp, and Constructora Gardilcic following the fatal accident on July 31 at the El Teniente division. According to Reuters, penalties for the private firms totaled approximately $87,000, while the fine imposed on the mining company was around $20,000.

The sanctions stem from violations detected following the underground seismic event that triggered the rockburst. Records show that workers were found entering or preparing to enter underground areas while the mine-wide suspension was still in effect.

Regarding Codelco, Reuters reported that the state-owned company “lacked a complete written procedure outlining how seismic alerts should be used to decide whether work should be halted or restricted.”

In response, Codelco stated that its seismic alert response system was active on the day of the accident and that it has appealed the fine through the Labor Directorate (DT). The company noted that there is an “ongoing legal procedure regarding the supervision of worker entry during operational shutdowns.”

Failures in contractor management

The private firms face accusations of delayed reporting and safety deficiencies. The Austrian firm Zublin, a subsidiary of Strabag, was sanctioned for failing to report a worker's death within the required 24-hour window, despite knowing of the fatality just two hours after the incident occurred.

Salfacorp also received fines for failing to immediately report the fatal accident and for other violations. According to Reuters, “Salfa's risk assessment failed to adequately account for seismic hazards, and the company did not do enough to protect the lives of its workers.”

Meanwhile, Constructora Gardilcic was fined for the late reporting of the death and for presenting a deficient safety plan. Authorities concluded that the company “failed to properly account for the risk of violent rockbursts outside of designated danger zones and assigned some workers to tasks for which they were not authorized.”

The case has also led to internal changes in the state company's leadership structure. According to BioBioChile, Codelco conducted an internal audit that uncovered “inconsistencies and cover-ups in how technical details were reported to the industry regulator following a rockburst.”

As a result, Codelco CEO Rubén Alvarado ordered the dismissal of three top executives: Mauricio Barraza Gallardo, Claudio Sougarret Larroquete, and Rodrigo Andrades Contreras. The company has handed over all relevant information to the Public Prosecutor's Office.

Comments

Comments are stored locally in your browser.