BHP Strikes Deal With Chilean Union Over Copper Mine Strike

Anglo-Australian mining giant BHP has reached a deal with the workers' union at the world's biggest copper mine, in Chile, which could prevent them going on strike, the company said in a statement.

Workers at the Escondida mine had announced 10 days ago their intention to strike after insisting their demands for a one-off bonus to recognize their work during the coronavirus pandemic had not been met.

In a statement issued late on Tuesday, BHP said negotiations with the workers union had ended, "resulting in the final content of the collective contract and closing conditions."

The 10-day negotiation period was extended by two days until Thursday with the union's members due to vote on whether to accept the agreement.

In 2017, Escondida workers staged a 44-day strike -- the longest ever in the Chilean mining industry -- that lost BHP $740 million and provoked a 1.3 percent fall in the country's GDP.

Escondida workers have demanded a one-off bonus to recognize their work during the Covid-19 pandemic -- the equivalent of one percent of the dividends the company's shareholders made.

They are also asking for a career development plan and education benefits for their children.

Chilean media claimed they had rejected a bonus worth around $23,000 each.

In April, the price of copper reached a 10-year high of over $10,000 per ton, and the Escondida mine has projected revenues of more than $10 billion for this year.

Chile is the world's largest copper producer with 5.6 million tons a year that makes up 28 percent of global output, much of which is sold to China, the world's biggest consumer.

Mining makes up 10-15 percent of Chile's GDP and half of its exports.