Mining giant BHP and the union representing workers at its Spence copper mine in Chile have agreed to extend contract negotiations, putting off the risk of a strike for now.
The union, which represents more than 1,100 workers at the Spence mine located in northern Chile, had their previous collective agreement expire on May 31.
In a statement, BHP said that the “Final Offer proposal must be presented to its (union) bases to be voted, so both parties agreed to extend the mediation in three days.”
This means the negotiations will continue for at least an additional three days, as the two sides work towards an agreement.
BHP also stated that the Spence mine, which produced 249,000 metric tons of copper last year, is operating as normal while the firm seeks an amicable solution with the union.
Chile is the world’s largest copper producer, and labor negotiations at major mines like Spence can have significant impacts on global copper supply and prices.
The extension of the contract negotiations averts the immediate risk of a strike at the Spence mine, providing some relief to the copper market. However, the outcome of the continued negotiations remains to be seen.