BHP has initiated the removal of striking workers at its Escondida copper mine in Chile, following the collapse of pay negotiations with the powerful Union No. 1. This strike, declared just hours prior, threatens to significantly impact production at the world’s largest copper mine, which produced 1.1 million metric tons last year.
After the union rejected a new invitation to negotiate, BHP activated a contingency plan to maintain “minimum services” and allow non-union members to continue working. While the mine remains operational, the extent of the scaled-back operations has not been disclosed.
Workers are striking for a larger share of profits amid high copper prices, with the union accusing BHP of anti-union practices by replacing essential workers. The last significant strike at Escondida in 2017 had a major impact on BHP’s production and contributed to rising global copper prices.
Despite the tensions, analysts suggest the market is currently stable, with hopes for a quick resolution and reduced demand from China mitigating immediate concerns. BHP’s U.S.-listed shares dipped slightly, and copper futures remained steady.