Unionized workers at Chile鈥檚 Codelco, the world鈥檚 largest copper miner, joined Wednesday thousands engaged in strike actions nation-wide, which have quickly degenerated into widespread violence, leaving at least 15 dead, over 1,600 in detention and seen six major cities under a state of emergency.
The Copper Workers Federation (FTC), representing those in the industry beyond the companies they work for, . They also asked members not to board buses at the end of their night shifts, which is now happening at curfew.
By the end of the day, Codelco said most of its mines as mining unions struck a deal with government officials to end the planned day-long walk-off聽. The FTC, however, announced a members meeting for the end of the week to analyze the situation again and consider future actions.
Protests are entering a new phase as Chile鈥檚 powerful copper-mining unions are encouraging members to down tools and join nation-wide demonstrations
The 48-hour stoppage is going ahead despite Chile鈥檚 President, Sebastian Pi帽era, announced late some concessions on Tuesday evening. They include a guaranteed minimum wage of about $3.5 an hour, a tax increase for those earning over $11,000 a month, and lifting basic pensions by 20%.
Current and upcoming walkouts risk hindering copper supplies from the world鈥檚 No. 1 producer, with ports already being impacted by mounting protests.聽Exports of the red metal account for about 60% of Chile鈥檚 earnings.
Perhaps an even bigger issue could be unions putting pressure on the government to increase royalties on copper concentrate exports to fund public projects, BMO Metals analyst, Colin Hamilton, warns. 鈥淭his would further dissuade investment in Chilean mine developments, in a sector where copper output has essentially stagnated since 2004,鈥� he says.
Antofagasta plc (LON:ANTO), which has four mines in Chile and employs about 19,000 people, said Wednesday it expected disruptions in its supply chain and production to dent output by about 5,000 tonnes.
Delivering , the miner kept its 2019 production guidance unchanged for now at 750-790,000 tonnes of copper. It cautioned, however, that 2020 production would be between 725-755,000 tonnes of copper due mostly to grades declining at its Centinela mine.
On Tuesday, workers at Escondida, the world鈥檚 largest copper mine, partially paralyzed work in support of the demonstrations.
Latin Spring?
Chile is the fifth South American state to be wracked by civil unrest seemingly triggered by increased government fees and charges, but ultimately fuelled by a gathering sense of economic inequality.
Earlier this month, Ecuador鈥檚 government was forced to retreat from the capital Quito after cuts to fuel subsidies, since then scrapped, immediately doubled prices and set off two weeks of violent protests.聽
Peru鈥檚 capital, Lima, also saw widespread violence following President Mart铆n Vizcarra鈥檚 decision to dissolve opposition-controlled congress, accusing lawmakers of trying to obstruct his efforts to end corruption.
In September, the streets of Argentina鈥檚 Buenos Aires were occupied by demonstrators complaining about food shortages, wages and the potential that the debt-crushed nation鈥檚 next IMF bailout would require even more drastic economic measures.
Tensions continue to rise on the streets of Bolivia鈥檚 administrative capital La Paz, with angry crowds accusing authorities of fraud in Sunday鈥檚 presidential election.
Protesters and the opposition claim electoral authorities manipulated the vote count in favour of President Evo Morales, the nation鈥檚 long-time socialist leader whose popularity has waned amid allegations of corruption and authoritarianism.