Workers at Key Escondida Copper Mine Vote for Strike

Workers at BHP's Escondida copper mine in Chile have voted overwhelmingly in favor of a strike, following the company's failure to reach a new contract agreement with their union. The Sindicato de Trabajadores de Minera Escondida union, representing 2,377 workers, announced that 99.7% of its members supported the strike action. The union is now anticipating a resumption of negotiations with BHP.

The Escondida mine, the world's largest producer of copper concentrates and cathodes, is a critical asset for BHP. Should negotiations fail to yield an agreement by August 6, the union plans to initiate the strike on that date, according to sources speaking to Metalnomist.

The workers are demanding that at least 1% of the company's dividends be distributed equally among them. In response, BHP stated it would seek mediation with Chile's labor authority "in the coming days," while maintaining that the mine continues to operate "normally."

BHP holds a 57.5% stake in the mine, with the remaining shares controlled by Rio Tinto and Japan-based JECO. For the fiscal year ending June 30, the Escondida mine produced 1.125 million metric tonnes of copper, a 7% increase from the previous year. BHP has projected copper production of 1.18 to 1.3 million tonnes for the year ending June 30, 2025, driven by higher grades and throughput.