Workers at BHP’s Escondida copper mine in Chile have firmly rejected the company’s request to pause their strike and return to negotiations. The union, which initiated the strike on Tuesday following a breakdown in contract talks, is demanding a larger share of profits from the world’s largest copper mine.
The strike’s commencement could significantly impact production at Escondida and influence global copper prices if a swift resolution is not achieved. A preliminary meeting held on Wednesday between BHP and the union aimed to bridge the gap in negotiations but ultimately did not yield any progress.
BHP stated it was willing to enhance its offer and proposed a temporary suspension of the strike until 8 PM that day to facilitate further discussions. However, the union declined this offer, accusing BHP of engaging in “anti-union” practices by replacing workers and imposing excessive conditions for resuming negotiations.
The union emphasized that the company’s demands made it unfeasible to initiate talks, noting that the tight deadline did not allow sufficient time for member consultation. They reported that the strike has rendered the Los Colorados concentration and electrowinning plants completely offline.
In response, BHP indicated that operations at the mine continue under a contingency plan, asserting that the strike impacts only those workers directly involved in the collective bargaining agreement, while others, including those from collaborating companies and approved minimum services, remain unaffected.
Additionally, a few hundred striking workers have set up an encampment at Puerto Coloso, BHP’s exclusive port in Antofagasta, which is crucial for shipments and houses desalination facilities.
According to a report by Brazilian investment bank BTG Pactual, BHP stands to lose between $25 million and $30 million daily if the strike continues, reminiscent of the 2017 strike that lasted 44 days and adversely affected Chile’s GDP.