Chile Copper Strike Going Strong on 16th Day

SANTIAGO, Oct. 29 -- Striking copper miners at Chile's Spence mine said on Wednesday there was no end in sight to a 16-day labor dispute that owner BHP Billiton (BLT.L: Quote) (BHP.AX: Quote) said has reduced production to a minimum.

    "Everything remains the same. The company hasn't called us, they aren't willing to negotiate," said Daniel Ibacache, a union leader at the mine.

    Production at Spence, which last year produced 165,000 tonnes of copper cathodes, has been hurt by the strike and on Monday, BHP Billiton spokesman Mauro Valdes said output is "reduced to a minimum."

    "We're not providing detailed guidance on output at Spence at this time. All we are saying is that production continues at a reduced level that will ensure process and asset integrity," said Ruban Yogarajah, a spokesman for BHP Billiton in London.

    The Spence strike, along with disruptions at Olympic Dam in Australia, has raised supply concerns in copper markets. Copper prices were steady early on Wednesday as a recovery in the U.S. dollar since Monday dragged prices off one-year peaks.

    BHP Billiton averted a strike at its giant Escondida mine, the world's largest, this month with wages and benefits that set the bar high for other contract talks in the industry.

    Union and business leaders have said the Escondida precedent could complicate negotiations due to begin this year and next at mines representing about one quarter of Chile's annual copper output of 5.3 million tonnes.

    (Source: Reuters)