UPDATE: Chile Collahuasi Talks Continue As Strike Enters Day 26

Negotiations between management at Chilean copper mine Dona Ines de Collahuasi and the striking union continued Tuesday, as the strike at the mine entered its 26th day.

On Monday, following mediation from a Catholic Church official, both sides met for the first time since the strike began on Nov. 5 and agreed to resume contract negotiations.

Union leaders and mine management met for several hours Tuesday morning and are scheduled to resume talks in the afternoon, Collahuasi spokeswoman Bernardita Fernandez said. She declined to comment on how the negotiations were progressing.

Several union leaders didn't respond to calls for comment.

Despite the strike, Collahuasi has been shipping copper out and meeting its contract obligations as a result of a contingency plan put in place before the strike began.

Earlier this month, the company sweetened its contract and benefits offer to entice workers to break away from the strike. Over 220 workers have since returned to work, according to Fernandez.

"We are in the process of normalizing production," she said.

In addition, the company hired at least 100 replacement workers during the strike, a company executive recently said.

The striking union groups 1,551 Collahuasi workers, or 90% of the mine's union eligible workforce.

Collahuasi is owned by diversified mining companies Xstrata PLC (XTA.LN) and Anglo American PLC (AAUKY, AAL.LN). Each ones hold a 44% stake in the mine. A consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the remaining 12%.

It is one of the world's largest copper mines and is located 185 kilometers southeast of the port of Iquique, high in the Andes mountains at 4,400 meters above sea level. Collahuasi 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

Mitsui (NASDAQ:MITSY)
Historical Stock Chart
From Jun 2024 to Jul 2024