SMM6, 13 March: the strike will begin on Friday due to the failure of labor negotiations between Chilean state copper company (Codelco) and the Chuquicamata trade union.
A spokesman for Union No. 2 at Chuquicamata Copper Mine said on Wednesday that the strike would begin at 5 a.m. Local time on Friday, as most members of Union No. 1, No. 2 and No. 3 at Chuquicamata Copper Mine rejected the latest contract offer from Codelco.
The union also said the strike could have a more far-reaching impact, with Chuquicamata producing 321000 tons of copper last year, so the strike could tighten global copper supplies.
Nelson Pizarro, chief executive of Codelco, expects global copper supply to start falling in 2022, with a shortfall of 4 million tons in 2028.
For the Chuquicamata copper mine, Codelco said it plans to cut 1211 jobs in the next few years.
Codelco has spent $5.5 billion to close Chuquicamata's old mine and turn it into a modern, semi-automatic mine.
Codelco does face a lot of challenges this year. The company produced only 342000 tons of copper in the first quarter, down 18 per cent from a year earlier. Pre-tax profits also fell 31 per cent from a year earlier to $372 million.
SMM will provide you with a follow-up analysis of the incident later, please look forward to it!
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