UPDATE: Chile BHP Spence Copper Mine Workers Begin Strike
October 13 2009 - 4:40PM
Dow Jones News
Unionized workers at Chilean copper mine Spence, owned by global
diversified miner BHP Billiton Ltd. (BHP), went on strike at the
start of the first shift Tuesday.
The mining industry in Chile is closely following the
negotiations process, as contracts at several other mines will
expire later this year and in early 2010.
Over a three-day holiday weekend, the 560-strong union voted
against the mining company's latest wage and benefits offer, union
members said.
Ore extraction has been halted, but the copper processing
plant's solvent extraction/electrowinning facilities are still
operating, said BHP spokesman Mauro Valdes.
"Our main focus is an orderly mine shutdown, centering on
maintaining our workers and our equipment safe," Valdes said.
He added that while local legislation allows for a company to
replace workers as soon as the strike begins, BHP has opted to not
exercise that right at the moment.
The union and mine management last week agreed to extend the
five-day government-assisted mediation period in the hopes of
reaching an agreement.
Contracts expired Sept. 30. The union sought a 5.5% wage
increase, improved benefits and bonuses totaling 15 million Chilean
pesos ($27,100).
The open-pit Spence mine, which came on line a few years ago,
produced about 165,000 metric tons of copper cathodes last
year.
This is Spence's second collective-bargaining process. The first
was negotiated in 2006 before the mine went into production.
BHP also owns the Cerro Colorado mine and controls and operates
the Escondida copper mine in Chile. Last week, BHP offered the more
than 2,000 members of the union at the latter mine an early wage
and benefits package to avoid a possible strike. Earlier Tuesday,
the Escondida union accepted the wage and benefits package for a
44-month term.
In 2006, when copper prices were booming, Escondida workers went
on strike for nearly a month, bringing the world's largest copper
mine to a standstill as they sought higher wages and production
bonuses.
-By Carolina Pica, Dow Jones Newswires; 56-2-820-4244;
carolina.pica@dowjones.com