Placer Dome Workers Take Positive Strike Vote Amid Contract Negotiations

Amid record-high copper prices, unionized workers at Placer Dome's Zaldivar copper mine in northern Chile have taken a positive strike vote after a two-year contract expired on June 26. The mine, with a workforce of about 700 employees and 560 contractors, produced 325 million pounds of copper in 2004, with the company targeting slightly higher production in 2005. Negotiations with the union are ongoing, with both sides due to meet next week to discuss the contract, which the company is seeking to renegotiate in light of rising costs.

Key Takeaways:

• Unionized workers at Placer Dome's Zaldivar copper mine in northern Chile have taken a positive strike vote due to ongoing contract negotiations.
• The current two-year contract expired on June 26, with workers unable to go on strike until several days after the expiration date.
• The Zaldivar mine produced 325 million pounds of copper in 2004 and is targeting slightly higher production in 2005, according to the company's annual information form.
• Total production costs are expected to increase to 68 U.S. cents per pound in 2005, up from 66 U.S. cents per pound in 2004, due to rising costs such as fuel, acid, labor, and parts.
• The company is seeking to renegotiate the contract in light of these increasing costs and may involve a mediator in the negotiations.
• The mine employs about 700 employees and 560 contractors, making it one of the largest pure copper operations in the region.

Statistics:

• 325 million pounds of copper produced in 2004 by the Zaldivar mine.
• 332 million pounds of copper targeted for production in 2005 by the company.
• Total production costs expected to be 68 U.S. cents per pound in 2005.
• Fuel, acid, labor, and parts costs are expected to rise in 2005.
• 700 employees and 560 contractors are employed at the Zaldivar mine.

Sources:

• Dow Jones Commodities News
• Comtex News
• Placer Dome Inc.
• Company Web Site: http://www.placerdome.com