Chilean unions vote to begin copper mine strike

Three unions at Chilean state-owned copper producer Codelco's Chuquicamata division in Chile have approved strike action effective tomorrow after rejecting a new contract offer.

Workers at Chuquicamata unanimously decided to begin a strike on 14 June. The unions said the latest contract offer from Codelco did not meet their demands on key issues. The division produced 320,744t of copper in 2018.

The dispute comes amid the transition from open pit to underground mining at Chuquicamata. A strike could affect a ramp-up in operations of the underground mine.

The expansion at the Chuquicamata underground mine is due to be complete in early July and will allow it to produce 367,000 t/yr of copper plus by-product molybdenum.

Codelco is the world's largest copper producer and total output — including Codelco's minority-owned mines — was 1.81mn t in 2018.

Issues mount for Codelco

Output from Codelco fell by 6.4pc year on year to 129,700t in April and slid by 14pc to 500,600t in January-April, the Chilean copper commission said. But the firm has maintained its 2019 production guidance of 1.7mn t.

Heavy seasonal rains, maintenance outages and lower grades of copper have pressured output, Codelco said.

The copper producer suspended operations at the Chuquicamata and Ministro Hales mines in the northern Antofagasta region in February because of heavy rainfall.

Maintenance works at the Chuquicamata and Potrerillos smelters began in December 2018 and experienced a number of delays. Codelco said all of its idled smelters would restart operations in June, with the Chuquicamata smelter having partially restarted over the weekend.

The state-owned producer suspended operations at its El Teniente mine following a fatality on 2 June.