Workers at the Caserones copper mine in Chile are due to go on strike on Tuesday local time after labor talks broke down. Chile's government has been involved in coordinating negotiations between labor and management since the Caserones union voted to strike last month.
In a statement, the Caserones union said its key members had decided to officially start the strike after the company refused to raise its previous offer. Union president Marco Garcia said workers regretted the company's attitude and that they had exhausted all options in dialogue and had no choice but to strike.
Caserones, operated by Lumina, a unit of JX Nippon Mining & Metals, produced about 127,000 tonnes last year. Caserones workers are not alone in going on strike. Several large copper mines in Chile, the world's largest copper producer, are at risk of strikes, with workers opting to go on strike over pay.
New crown since the outbreak, copper prices soared, brings to the industry profits at the same time, also have intensified the contradiction between the parties, the main producer of copper in Chile and Peru have consciously raising taxes, at the same time, local miners dissatisfaction with the current treatment, and mining companies are reluctant to cut meat and benefits, and workers will only choose strike to protest.
Escondia, the world's largest copper mine with almost 5 per cent of global copper supply, produced 1.18m tonnes in 2020, and Andina, owned by Chile's state-run copper company Codelco, are also in tense Labour negotiations.
Codelco is the world's largest copper producer. Its Andina copper mine produced 184,000 tons in 2020, about 11 percent of Codelco's total output last year.
For copper traders, fears that the rapid rise in COVID-19 cases in many countries would reduce demand for the metal have been partly alleviated by labor disputes at several Chilean mines. Some analysts say that if three major copper mines, Escondida, Andina and Caserones, go on strike at the same time, about 7% of global copper production will be affected.
Negotiations between management and management at The Andina mine have now eased. Codelco and the union have agreed to extend negotiations and workers will vote on the latest wage offer. The result will be announced on Wednesday.
