(BHP Group Ltd) of BHP Billiton said on Wednesday that it would take emergency measures for operations in Chile after its unions at the (Escondida) and Spence (Spence) copper mines in Escondida rejected the global mining company's contract offer and called for a strike.
The union, which represents 205 workers who run BHP Billiton's integrated operations center, which remotely manages mines, cathode copper and mineral processing plants in San Diego, called on union workers to go on strike from Thursday.
Escondida and Spence mines have given notice that "they will take emergency measures within the framework prescribed by law," BHP said in a statement. He added that workers who did not belong to trade unions and contractors would continue to work.
The impact of the strike on BHP's operations in Chile is unclear as negotiations between the remote operators union and the company are the first. Escondida (Escondida) is the world's largest copper mine and Chile is the world's largest copper producer.
The strike comes as global copper prices hover near record highs and rising political risks in the region, with Chile, the number one copper producer, and the second-largest producer in neighbouring Peru making potentially major political shifts.
Eskondida (Escondida) will produce 1.19 million tons of copper by 2020, while Spence (Spence) will produce 146700 tons of Chile's total 5.7 million tons.
BHP Billiton and the union have completed five trading days of mediation ordered by the government and can apply for an extension of the mediation. But the union members decided to go on strike, thinking that the proposal on the table was not enough.
"the final proposal represents the company's responsible efforts and corresponds to competitive market interests," the company added in a statement. "
BHP Billiton's Spence and Escondida mines in Chile will go on strike on Thursday after negotiations failed to reach an agreement.
