Strike Looms over Escondida Mine As Latest Wage Offer Rejected

SEATTLE (Scrap Monster): The world’s biggest copper mine could see its output impacted. The supervisors at Chile’s Escondida mine rejected the latest wage offer put forward by the company. A voting, held Wednesday, saw nearly 98% of the members of the supervisors’ union approving the strike action.

Meantime, the BHP Group, which owns the mine, said that the company has five days of mediation, under the local law, in order to avert a possible strike action by union members. Upon agreement of both the sides, the mediation talks could be extended for another five days, following this.

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The strike by supervisors may not bring the mine to a complete halt. However, it may lead to slowdown in production rate at the mine. It must be noted that the mine had recorded a production of 100,000 tons during the month of July this year. The reduced output from the mine may further lead to escalation of copper prices, which has already rallied by almost 40% from the March low.

The company announced that the latest offer is serious and presents notable improvements. It is open to dialogue and is hopeful of reaching a mutually beneficial collective agreement that would address the short and long term challenges, it said in an emailed statement.