Negotiations broke down Caserones Copper Mine Union strike in Chile

After the breakdown of salary negotiations with management mediation, JX Nippon Mining & Metals Corp. of Japan Workers at the Caserones copper mine, operated by its subsidiary Lumina, will leave on Tuesday after the last negotiations on collective labor contracts broke down on Monday.

The main union members at the Caserones mine went on strike because the company was unwilling to improve its previous offer, the union said in a statement.

Marco Garcia, president of the union, said, "We regret the company's position. We have exhausted everything in the dialogue and have no choice but to strike."

The strike comes as Chile is engaged in a series of collective bargaining, including Codelco's Andina mine and BHP Group's world-class copper mine Escondida, both in the final stages of mediation negotiations. Labour tensions in the largest copper producer have raised concerns about tighter global supplies.

Miners have been encouraged by surging producer profits, and Chile is considering raising taxes to help address inequality exacerbated by the pandemic. At the same time, as ore quality deteriorates and input prices begin to rise, companies are trying to rein in labour costs in cyclical operations.

Caserones produced about 127000 metric tons of copper last year.