Chile: World’s Largest Copper Mine Closed Due to Strike

Escondida workers refuse contract extension and demand redistribution of 1% dividends, government mediation may be needed

The world’s largest copper mine risks closure due to a workers’ strike. Workers at the Escondida copper deposits in the Atacama Desert in northern Chile have refused to renew their labor contracts, threatening a general strike. The corresponding union announced that 99.75% of the 2371 members had joined the agitation against Australia’s BHP Group, the world’s largest mining company, which owns the rights to most of the mine, which also employs Rio Tinto (an Anglo-Australian group) and JECO Corp (a Japanese company).

The union, according to Reuters, explained that the strike was “supported by the vast majority of partners” given that BHP’s offer in no way met workers’ expectations. The goal is to be able to redistribute the 1% of dividends to workers, but in contrast, the job offer has smaller deficits and longer working days in the face of some “one-time” bonuses that obviously don’t satisfy workers.

Meanwhile, BHP explained that it would seek mediation with the Chilean government to reach an agreement.