Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Bernie Sanders calls for RFK Jr. to resign...
Top Senate Republican ready to go nuclear, ‘roll...
Altech Batteries LtdCERENERGY Battery 46.7M Euro German Grant...
Altech – CERENERGY Battery 46.7M Euro German Grant...
Locksley Resources LimitedStrengthens Leadership to Accelerate Growth Strategy
Heliostar Presents Second Quarter 2025 Financial Results
Apollo to Proceed with 5-for-1 Share Consolidation
Rhode Island’s ‘Taylor Swift Tax’ on vacation homes...
Former FBI Director Robert Mueller has Parkinson’s disease:...
Earthwise Advertising & Investor Awareness Campaign
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Investing

BHP Activates Contingency Plan as Workers Strike at Escondida Copper Mine

by admin August 15, 2024
August 15, 2024
BHP Activates Contingency Plan as Workers Strike at Escondida Copper Mine

Commodities giant BHP (ASX:BHP,LSE:BHP,NYSE:BHP) has begun removing workers who went on strike at its Chile-based Escondida copper mine, the largest copper operation in the world.

According to Reuters, Union No. 1 declared the strike after negotiations on a new labor contract collapsed.

The union, which represents around 2,400 workers, rejected BHP’s latest offer. The company had proposed a signing bonus of US$28,900 per worker, but the union had asked for 1 percent of shareholder dividends for the mine.

The news outlet says that would equate to about US$36,000 per worker. The union’s demand comes after a period of high copper prices, which have bolstered the profitability of mining operations globally.

BHP said it has activated a contingency plan in response to the strike, a standard measure in such situations. This plan allows the company to maintain ‘minimum services’ at the mine using non-union employees.

Union No. 1 is open to further negotiations, but has accused BHP of violating strike terms by replacing striking workers.

The company has not specified how much production will be affected by the strike. Escondida, which produced 1.1 million metric tons of copper last year, accounts for approximately 5 percent of the world’s total copper output. It processes about 400,000 metric tons of ore daily, making it a critical source of copper for smelters, particularly in China.

Analysts are closely monitoring the situation, noting that while the immediate impact on the copper market has been muted, a prolonged strike could disrupt global supply chains.

Workers at Lundin Mining’s (TSX:LUN,OTC Pink:LUNMF) Caserones copper mine in Chile initiated a similar strike over failed wage negotiations on Tuesday (August 13). Lundin and BHP recently made a joint bid to acquire Filo (TSX:FIL,OTCQX:FLMMF) for C$4.5 billion. The two companies plan to form a 50/50 venture that will include the Filo del Sol project, which is owned by Filo, as well as Lundin’s Josemaria project, situated near the Chilean border.

BHP, which shares ownership of Escondida with Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Japan’s JECO, has been engaged in negotiations with Union No. 1 for several months. The company has defended its latest offer as one of the most competitive in the industry and expressed disappointment over the breakdown in talks.

The mine’s output is critical not only to BHP’s bottom line, but also to the global copper market.

As the strike continues, both sides are under pressure to reach a deal that will allow full production to resume.

During 2017, a labor dispute at Escondida resulted in a 44 day work stoppage. That strike severely impacted copper production at the mine and contributed to a rise in global copper prices.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

previous post
Google’s New Pixel Devices Promise Enhanced AI Capabilities
next post
Gold and Silver Prices Fall as​ CPI Meets Expectations

You may also like

Panelists: Gold “Essential” to Own as Volatility Rises...

February 11, 2025

Wyoming Rare USA Secures Strategic Facility to Support...

December 26, 2024

Altech – CERENERGY® First 60 KWh Prototype Online...

October 1, 2024

Radiopharm Theranostics CEO Shares Company Milestones as NASDAQ...

November 18, 2024

Rock Chip Results Confirm Polymetallic Potential

March 20, 2025

Lac Carheil Expanded Footprint, Drilling Fully Permitted

December 23, 2024

TSMC Shatters Q3 Estimates with 36.5 Percent Revenue...

October 11, 2024

R&D Tax Refund of $7.9M Received

November 11, 2024

Nordic Nickel Limited (ASX: NNL) – Trading Halt

September 23, 2024

Westport Announces Lock-Up Agreements in Support of the...

May 1, 2025

Recent Posts

  • Bernie Sanders calls for RFK Jr. to resign as HHS secretary over vaccine policies: ‘Rally the American people’
  • Top Senate Republican ready to go nuclear, ‘roll over’ Democrats with rule change to confirm Trump nominees
  • Altech Batteries LtdCERENERGY Battery 46.7M Euro German Grant Approval
  • Altech – CERENERGY Battery 46.7M Euro German Grant Approval
  • Locksley Resources LimitedStrengthens Leadership to Accelerate Growth Strategy

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (903)
    • Investing (2,877)
    • Politics (3,527)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Sightful Invest. All Rights Reserved.