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Mining industry

Unionized Workers at Escondida Copper Mine Consider 24-Hour Strike

Strategic Insights

— 1 min read

Unionized workers at Escondida copper mine, controlled by BHP Billiton Ltd., are considering a 24-hour strike for Friday due to unmet contract demands. The strike could potentially result in the loss of 3,000 metric tons of copper production, putting additional pressure on already-strong international copper prices. The workers, led by the Escondida Mine Workers Union No. 1, which represents 2,340 workers, are seeking contract improvements and will meet with company representatives to decide on the strike.

Key Takeaways:

  • The 2,340-person strong Escondida Mine Workers Union No. 1 is mulling a 24-hour stoppage at Escondida, the world's largest copper mine, over contract demands which have gone unmet.
  • The potential strike could cost Escondida some 3,000 metric tons of copper production, contributing to higher international copper prices.
  • BHP Billiton holds a controlling 57.5% stake in Escondida, with Rio Tinto PLC holding 30% and a Japanese consortium led by Mitsubishi Corp. holding 12.5%.
  • Chilean state copper company Corporacion Nacional del Cobre faced a company-wide strike earlier this month, resulting in losses of $41 million and 4,900 metric tons of lost copper production.
  • Escondida produced 1.09 million tons of copper in 2010.
  • The union's treasurer, Jaime Tejada, stated that the strike would begin on the first shift Friday at 8:00 a.m. local time (12:00 GMT) if approved.

Statistics:

  • 2,340: Number of workers represented by the Escondida Mine Workers Union No. 1.
  • 3,000 metric tons: Potential copper production loss due to the strike.
  • 31.5%: Percentage of the mine held by BHP Billiton, Rio Tinto PLC, and the Japanese consortium combined.
  • 57.5%: BHP Billiton's controlling stake in Escondida.
  • 30%: Rio Tinto PLC's stake in Escondida.
  • 12.5%: Japanese consortium's stake in Escondida.
  • $41 million: Losses incurred by Corporacion Nacional del Cobre due to the company-wide strike.
  • 4,900 metric tons: Copper production lost during the company-wide strike at Corporacion Nacional del Cobre.
  • 1.09 million tons: Copper production at Escondida in 2010.

Sources:

  • Dow Jones Commodities News via Comtex, July 21, 2011.
  • Reuters, as cited by Dow Jones Newswires.
  • Anthony Esposito, Dow Jones Newswires, July 21, 2011.

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