Chile Collahuasi Mine's Sweetened Offer About To Expire
November 23 2010 - 4:42PM
Dow Jones News
With the strike at Chilean copper mine Dona Ines de Collahuasi
in its 19th day Tuesday, the company's sweetened offer expires at
midnight, a company spokeswoman said.
Some 120 workers according to the company, or 36 according to
the union, broke away from the strike and accepted the offer
earlier this week.
Despite the unusually long strike--as industrial actions in
Chile tend to be short-lived, Collahuasi has been meeting its
commitments and has sent out two separate copper shipments during
the walkout.
Production remains normal due to a contingency plan put in place
before workers downed their tools, Collahuasi spokeswoman
Bernardita Fernandez said.
Despite union reports Tuesday saying the Catholic church was
acting a mediator in the labor conflict, Fernandez said talks
hadn't resumed.
According to Chilean labor laws, if 50% of the striking workers
break away, the strike ends immediately.
Mining analysts say its unlikely that the company will be able
to lure the nearly 780 workers needed to end the strike by
midnight.
Diversified mining companies Xstrata PLC (XTA.LN) and Anglo
American PLC (AAUKY, AAL.LN) each hold a 44% stake in Collahuasi. A
consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the
remaining 12%.
Collahuasi, one of the world's largest copper mines, is located
185 kilometers southeast of the port of Iquique, high in the Andes
mountains at 4,400 meters above sea level. It produces about
500,000 metric tons of copper a year, or about 10% of Chile's
annual output.
Chile is the world's leading copper producer, accounting for
about 35% of global output.
-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919;
carolina.pica@dowjones.com
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