BHP’s Escondida mine strike becomes Chile鈥檚 longest, ends with no deal
Talks between striking workers at Escondida copper mine in Chile and majority owner and operator BHP Billiton (ASX, NYSE:BHP) (LON:BLT), ended Thursday with the parts failing to reach a deal and聽the main union choosing to return to work.
The labour action at the world鈥檚 largest copper mine, which finished today after 43 days, became聽the longest private-sector mining strike in Chile鈥檚 history, local paper (in Spanish).
Shortly after the mine鈥檚 president declared talks officially over, strikers decided to return to work.
It was still far from聽matching the 74-day strike at Codelco鈥檚 El Teniente mine in 1973, which took place shortly before the military coup that overthrew socialist President Salvador Allende.
Marcelo Castillo, the mine鈥檚 president, declared talks officially over and said the company聽was聽now focused on choosing聽the best alternative聽to restart production.
Workers give up, extend contract
In response,聽the main union at Escondida said its 2,500 members would return to work but not before , known as Article 369, which allows them to extend their old contract for 18 months.聽At the end of that period, both sides would again need to try to reach a new agreement.
The use of such legal aid would be “complex” for Escondida, Castillo had said earlier in the day, as it would require to review the operation’s聽plan聽and structure in order to allow the firm聽to make its聽mining business viable.
In the past weeks, the company had already warned the long-dragged stoppage would force it to revise its operational plan, leading to a downward adjustment of its planned production volumes for the year, given that BHP, which owns de 57,5% of the mine, has already reported more than聽.
Talking to MINING.com earlier this month, Chile鈥檚 Mining Minister Aurora Williams also expressed concerns about the losses caused by the strike. 鈥淲e estimate that some 3,400 tonnes of copper are not being produced each day of the strike. This translates into 100,000 tonnes per month,鈥 .
It’s聽estimated that Escondida 鈥 responsible聽for聽about 5% of the world鈥檚 total copper output 鈥 failed to produced more than 120,000 tonnes of the red metal due to the stoppage.
While majority-owned and operated by BHP, Rio Tinto and Japanese companies such as Mitsubishi Corp also hold stakes in the mine.
Chile is the world’s biggest copper producer, and sales of the metal make up for about 60% its export earnings.
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3 Comments
Karsten Berg
This is really bad sign for investers. Fortunately human lifes could be saved. But violence gets still established over ‘french’ diplomacy in Chilean’s miners-heads.
john robins
712 million. Would have been better to pay that to the employee over time and keep production going. It’s a loss for both sides due to greed of the company. But the workers suffer the most. Company greed is disgusting. Next time i hope the workers get what they want and shove bhp’s head in the rain barrel. Shut the mine down.someone else will buy it and life goes on
The mine started out non union with a deliberate and enlightened policy to keep it that way. It was one “Wunderful” mine manager that wrecked that plan.