Escondida and Spence copper mines in Chile, owned by BHP Billiton, face the threat of strike

The union representing workers at the Escondida and Spence copper mines in Chile, owned by BHP Billiton, has asked its members to vote on the strike after contract negotiations between employers and employees stalled, the union president said on Monday.

The company's integrated operations center, (Integrated Operations Centre), is operated by 205 workers and manages the open-pit mine, cathode and mineral processing plant north of Santiago, Chile.

Contract negotiations began at the end of March, and the union received what the company called a final proposal over the weekend and will vote this week.

Jessica Orellana, president of the union, said the demands of workers and their key role in the production chain had been ignored. "We are raising the awareness of our members to vote for the strike and are expected to agree 100% to do so."

The threat of strike is affecting operations at Spence and Escondida, the world's largest copper mine, at a time when copper prices are rising to record highs and the concentrate market is in tight supply. The global economic recovery after the novel coronavirus outbreak and increased investment in the green energy industry are driving a surge in demand.

Local law stipulates that if workers vote for a strike, both sides must still go through a government-led mediation period of five to 10 days.

BHP can take advantage of legal loopholes to replace strikers because they have mine service contracts.

Orellana said it hoped that other BHP workers would refuse to take their place. "this will involve them performing other functions that are not related to their role."

BHP Billiton had no immediate comment.

The Escondida copper mine produced 1.19 million tons of copper in 2020, while the Spence copper mine produced 146700 tons, with a total output of 5.7 million tons in Chile.