The biggest copper mine in the world, Chile's Escondida, saw its labour union reach an agreement with BHP on 18 August, which ended a strike that could have disrupted global copper supplies.
Representing around 2,400 workers, the union initiated the strike on 13 August after failing to secure a pay deal.
A key negotiation issue was the union's request for 1% of the mine's shareholder dividends, equivalent to around $35,000 per worker. Before the strike, the company had proposed a bonus of $28,900.
“BHP and Union No 1 have [agreed] to a collective contract proposal. Along with that, it was agreed to suspend the strike underway as of this Friday, 16 August, at 8am,” BHP said in a statement, as per reports.
BHP did not offer any additional information on the agreement with the union. However, last week, sources at the company and the union told Reuters that BHP proposed giving employees approximately $32,000 as a bonus and an extra $2,000 in low-interest loans.
The three-year agreement involved adjustments in labour conditions, including "initiatives to optimise shift changes, enhance equipment usage, and compliance with the 40-hour law," as reported by Reuters. According to an internal union communication reviewed by the news agency, members were instructed to return to work.
According to GlobalData, the Escondida mine produced 882,100 metric tons of copper last year. News sources indicate that the mine has been operational since the strikes commenced, but BHP has not provided details on the extent to which operations have been reduced.
According to Reuters, the strike caused an initial drop in copper prices, which later bounced back to a 0.3% increase, reaching $9,177.5 per metric tonne after hitting a low of $9,047 for the session. The metal, essential in power and construction, was on track to achieve its first weekly gain in six weeks at 3.5%, owing to concerns about supply disruptions arising from the strike.
Chile's estimated copper production in 2023 was 5.33 million tonnes (mt), representing approximately 24% of the world's total production. This marks Chile's position as the world's top copper producer, followed by Peru with 2.6mt and China with 1.7mt.
