[Asia Economy Reporter Park Byung-hee] The strike of workers at Escondida mine, the world's largest copper mine in Chile, is imminent, which is expected to become a variable in international copper prices.
Bloomberg reported on the 28th (local time) that the Escondida mine union leadership decided to reject the final wage offer from BHP Group, the owner of the mine. The Escondida mine union and BHP Group have been negotiating wages since the end of March but have failed to reach a compromise.
The union leadership announced on the same day through a statement that they plan to decide on whether to strike after a vote by 2,330 union members by the 31st. Furthermore, the union stated that a strike is the only way to bring about changes in management and encouraged members to support the strike. They also claimed that the responsibility for avoiding violent clashes lies entirely with the management side.
In the statement, the union leadership said that while management is demanding extended working hours to increase productivity and profits, the salary levels proposed by management do not meet the levels the union demands.
If copper production at the Escondida mine is halted, it is expected to have a significant impact on the global copper supply. Chile is the world's largest copper producer, accounting for 28.5% of global production last year. Last year's production was 5.7 million tons, of which Escondida mine produced 1.19 million tons.
Copper is a raw material with high demand in eco-friendly industries such as electric vehicles and wind turbines, and its price is expected to rise sharply in the future. The London Metal Exchange (LME) copper futures price hit an all-time high in May, soaring to around $10,700 per ton. It then weakened to about $9,200 per ton but recently rebounded to recover the $9,700 level.
The Escondida union also went on strike for 44 days in 2017.
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