Indefinite strike halts operations at BHP’s Chilean copper mine

SANTIAGO (Scrap Monster): Unionised workers at BHP Billiton’s Cerro Colorado copper mine in northern Chile has begun an indefinite strike as negotiations on wage increase ended without reaching an agreement.

The leaders of the union had warned on Friday that the workers will go on strike from Monday onwards, if the company failed to come up with better wage offer. The company had proposed a real wage increase of 1%, which in turn was rejected by the union. Nearly 73% of the union members who participated in the vote on Friday had rejected the company proposal. Union president Leoncio Parra stated that members were unhappy not only with the 1% increase, but also with the proposed changes in job roles.

All employees in the morning shift beginning at 7:35 AM local time followed the strike order, thereby bringing operations at the open pit mine to a halt. The mine was abandoned and the access road to the mine was blocked by the striking union members. Incidentally, the union represents around 700 workers at the mine.

Meantime, BHP Billiton, in a statement, noted that a strike has begun at its Cerro Colorado copper mine on Monday in line with Chilean labor law. It termed the union decision as unfortunate. However, the company is yet to comment on the impact that the strike can have on its operations. According to data released by the Chilean state Copper Commission Cochilco, the Cerro Colorado mine had produced 55,600 tonnes of copper during the nine-month period from January to September last year.

Cerro Colorado open pit copper mine, wholly owned by BHP Billiton, lies within the Atacama Desert at an altitude of 2,600m east of Iquique, Chile. The mine is a significant producer of copper cathode for BHP. Commercial production at Cerro Colorado started mid-1994, following which it underwent major expansions in 1995 and 1998. Following these expansions, production at the mine was increased to 100,000t annually. The optimization and efficiency improvements had lifted the capacity to 120,000t per year. However, the current production levels stand at 106,000t per annum on account of lower copper grades.