[SMM Analysis] Chilean National Copper Codelco Chuquicamata Workers strike Copper concentrate TC decline

SMM, June 25 / PRNewswire-Asianet /-

Two weeks ago, according to Chilean sources, the management of Chuquicamata, a mining company owned by Chilean National Copper Codelco, broke down in talks with three trade unions, who said on June 13 that they planned to go on strike on June 14 after Codelco failed to meet workers' expectations of medical costs and pensions. The strike, which continues for the second week, is expected to affect 10000 metal tons of copper production by Chuquicamata workers, which is expected to cost Codelco $500m.

According to the latest news, union members can choose to rework voluntarily after 15 days of strike, and Codelco will propose a new agreement by June 27. Most members of the three unions currently on strike voted against the company's latest agreement on Saturday. According to the union, 1511 workers opposed the agreement, while 1225 supported the proposal.

Chuquicamata produced 321000 tons of copper in 2018. The continued fermentation of the strike will have a greater impact on copper supply in Chile, especially in the face of frequent accidents among mining companies around the world this year and a contraction in the supply of copper concentrate, the Chuquicamata strike is even worse. At present, the transaction TC of copper concentrate in the market has been below 60 US dollars / ton, the price of superimposed sulfuric acid has been falling continuously, and the production pressure of some small and medium-sized smelters in China has increased.

(SMM Kwong Tze-si)