Workers at the Escondida mine in Chile, the world’s largest copper mine, have gone on strike after wage negotiations with BHP failed to reach an agreement. The union, representing 2,400 miners, demands better wages, shorter working hours, increased bonuses, and additional compensation for long-serving employees. The strike, which began on August 13, 2024, comes after the union rejected BHP’s offer, including a $28,900 bonus per worker.
Escondida is crucial to global copper supply, producing 614,400 tonnes in the first half of 2024, accounting for 5.4% of global output. The last significant strike at Escondida occurred in 2017 and lasted 44 days, severely disrupting production and causing copper prices to rise. This history has raised concerns that a prolonged strike could once again impact global copper markets, leading to supply shortages and price increases.
The strike also underscores the growing tension between labor unions and mining companies in Chile, which is the world’s largest copper producer. Copper is vital to various industries, particularly in electronics and renewable energy, making the stability of its supply chain critically important. Analysts estimate that a 10-day strike could cost BHP over $250 million, with greater losses if the strike extends beyond that period.
The outcome of the strike negotiations will be closely watched by the global market, as any prolonged disruption could have significant economic repercussions, not only for BHP but for industries dependent on copper worldwide.