Labor Strike at Chilean Copper Mine Spence Continues on Seventh Day

Strategic Insights -

A labor strike at the Spence mine in Chile, owned by global diversified miner BHP Billiton Ltd., entered its seventh day on Monday with no new talks between the striking union and mine management. The 560 unionized workers went on strike on October 13 after contract negotiations fell through, with their contracts expiring on September 30. BHP shut down ore extraction operations to safeguard non-striking workers, about 40% of the total labor force, and equipment. The striking workers are camped out on the outskirts of the mining compound and plan to hold a rally on Tuesday backed by the Mining Federation of Chile.

Key Takeaways:

  • The labor strike at the Spence mine in Chile began on October 13, with 560 unionized workers demanding new contract negotiations.
  • The striking workers are camped out on the outskirts of the mining compound and plan to hold a rally on Tuesday backed by the Mining Federation of Chile.
  • BHP has shut down ore extraction operations to safeguard non-striking workers, about 40% of the total labor force, and equipment.
  • The open-pit Spence mine last year produced 165,000 metric tons of copper, with the option to return to negotiations.
  • Spence union president Andres Ramirez said there haven't been any new talks with management since the strike began, and it's up to the company to decide whether the strike continues or ends.
  • BHP owns the Cerro Colorado mine and controls and operates Escondida, the biggest copper mine in the world.
  • The labor strike has not affected the mine's production of copper.

Statistics:

  • 560: Number of unionized workers on strike at the Spence mine.
  • 40%: Percentage of the total labor force that are non-striking workers.
  • 165,000: Metric tons of copper produced by the Spence mine last year.
  • 53,000: Number of employees at BHP's Escondida mine in Chile.
  • $55.78: Price of BHP shares on July 15, 2009.

Sources:

  • Dow Jones Commodities News via Comtex, October 19, 2009.
  • Carolina Pica, Dow Jones Newswires, 56-2-820-4244; carolina.pica@dowjones.com (END) Dow Jones Newswires 10-19-09 0849ET.
  • Comtex SmarTrend Alert, October 15, 2009.