Workers strike at world's largest copper mine in blow to BHP

WORKERS at BHP’s Escondida mine in Chile began a strike on Tuesday (Aug 13) morning after pay negotiations with management fell apart, setting the stage for a potential hit to production at the world’s biggest copper mine.

The workers’ union said early on Tuesday a strike was set to start at 1200 GMT, after little progress was made during five days of government mediated talks.

“We made every responsible effort to reach an agreement, but that wasn’t possible,” said the union, which represents about 2,400 people.

BHP said it had activated a contingency plan to handle the strike, and that it had not anticipated a new set of demands from the union on the final day of talks.

“The company formulated four proposals responding to each of the points raised by the union, who on the last day of mediation presented new requirements,” it said in a statement.

The company has described its workers’ contract as one of the best in the industry.

Union President Patricio Tapia previously told Reuters that if union members were to strike, BHP would not be able to produce copper since replacement workers are prohibited by law and the union represents 98.5 per cent of frontline operational workers at Escondida.

Workers at Escondida last walked out in 2017, prompting a 44-day strike that severely affected BHP’s production and pushed up copper prices on the global market.

BHP, one of the world’s biggest miners, owns more than half of Escondida, located about 130 km southeast of the northern city of Antofagasta, along with Rio Tinto and JECO Corp.

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Escondida produced 1.1 million metric tons of copper in 2023.

Workers at Escondida have demanded 1 per cent of shareholder dividends to be distributed equally among them, citing favourable current and projected prices of copper, a metal expected to be in even higher demand for the global energy transition and artificial intelligence applications.

The company’s proposal included a provision for a bonus of about US$28,900 per worker. REUTERS