Workers at the world's largest copper mine in Chile have gone on strike
On Tuesday, workers at the world's largest copper mine in Chile went on strike. The unions at the Escondida mine stated that negotiations with the employer, Australian company BHP, had failed. Workers are demanding a profit-sharing arrangement due to the increase in copper prices. A prolonged strike could impact the global copper market.
Union members had voted in favor of the strike at the beginning of August. Local media reports suggest that BHP proposed paying each worker $28,900. The unionists are demanding $36,000 - equivalent to one percent of the dividends flowing to foreign investors. The Escondida mine in the Atacama Desert is owned 57.5% by BHP. Additionally, Australian mining company Rio Tinto holds a 30% stake, and Japanese company Jeco owns 12.5%.
Workers' wages at Escondida are well above the national average in Chile but in line with industry standards in the powerful Chilean copper industry. Chile is the world's largest copper producer, with the sector accounting for 10-15% of its GDP. A significant portion of the mined metal is exported to China for smelting, refining, and processing.
In 2017, mine workers went on strike for 44 days, resulting in estimated economic losses of $740 million. In 2021, BHP managed to avert a strike. However, unions are now determined and have the means for a "very long" strike, significantly longer than the 2017 strike.
The unionists are negotiating their demand for a higher wage, specifically asking for $36,000, which is equivalent to one percent of the dividends flowing to foreign investors, in Chile, where Escondida mine, the world's largest copper mine, is located. Despite BHP proposing $28,900 to each worker, the strike at Escondida mine, which is partly owned by BHP, Australian mining company Rio Tinto, and Japanese company Jeco, is poised to impact Chile, being the world's largest copper producer.
