Escondida copper mine hit by strike, Chile on edge

Workers at UK-Australian BHP´s Escondida copper mine in Chile went on strike today in solidarity with a broad-based popular uprising that has swept across the country.

Open-pit mine Escondida, located in northern Chile's Atacama desert, is the world's largest copper mine.

Contractors in the Copper Workers Confederation have called on their members to strike as well. Chile's main confederation (CUT) is calling for a march and general strike on 23-24 October.

Codelco, Chile's state-owned copper mining company, said its operations are ongoing except for some shift adjustments.

Escondida copper production fell by 1pc year on year to 293,000t in July-September 2019 with annual guidance maintained at 1.16mn-1.23mn t, according to BHP's latest quarterly results.

Chile's crisis detonated last week with a student-led movement against a metro fare hike, but the demonstrations have deteriorated into violent clashes, widespread looting of shops and the burning of dozens of metro stations. Many protests, some peaceful, are underway again today. Much of Santiago is shut down, with tear gas and smoke hanging in the air, and police helicopters patrolling overhead.

Up until now, Chile's strategic mining sector had not been directly affected, aside from difficulties transporting workers because of a state of emergency and nighttime curfew imposed by the government across several regions, including Santiago. Copper is Chile's largest source of foreign income.

"We are part of the People who are tired and demand changes," according to a statement from the Escondida No 1 union announcing the strike starting at 6am ET today.

The union is demanding that the government withdraw the military from the streets.

Several opposition parties have refused to take part in a dialogue called by center-right president Sebastian Pinera, who is under pressure to make cabinet changes.

Some of the protesters are rejecting the "elite" dialogue of political parties and are demanding that the president resign to make room for a constituent assembly to forge a new constitution.