BHP-Union Talks Fail Again With Copper Strike in Second Day

(Bloomberg) — The latest attempt to resume negotiations between BHP Group and striking Chilean copper miners broke down as the two sides failed to agree on conditions, according to the union.

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With a strike at world No. 1 copper mine Escondida in its second day, union leaders and company representatives sat down for a voluntary mediation session in northern Chile on Wednesday.

One of BHP’s conditions for continuing the talks was a suspension of the strike involving about 2,400 workers. To do so, leaders required approval by members, a process that couldn’t have been completed by BHP’s deadline of 2 p.m. local time, the union said. “We regret the position of the company, which has refused to talk without conditions,” it said.

In response, BHP said union leaders didn’t agree to suspend the strike: “The company maintains its willingness to dialog and complete this process in a manner satisfactory.”

The stoppage has disrupted production at a site that accounts for about 5% of the world’s mined copper at a time of tightness in the supply of concentrate — the raw material used to feed smelters. Copper futures were little changed in London on Wednesday.

While BHP says operations at Escondida continue, the Melbourne-based firm hasn’t quantified the impact on output. The mine has been the scene of lengthy stoppages in the past, including a 44-day strike in 2017. In February of that year, production plunged to less than a quarter of normal levels, government data show.

Wednesday’s impasse is the latest in a dramatic chain of events over the past three days at Escondida.

On Monday, the final day of mandatory mediation, the union accused BHP of bad faith by going public with a new offer before it had been discussed. The company said it did so after union negotiators failed to show up for talks. The ensuing all-night, last ditch effort to reach a deal proved unsuccessful, prompting workers to down tools.

People with knowledge of the matter told Bloomberg that the two sides held discussions on Tuesday, although publicly BHP and the union said late in the day that there were no official negotiations.

In the meantime, BHP said it removed striking employees from the mine site as the company set in place a contingency plan, using workers that are not part of the collective bargaining process as it is entitled to do.

In a statement earlier Wednesday, the union accused BHP of engaging in “serious anti-union practices” by resorting to replacement personnel to help ship out copper and process ore. Members have access to enough funding to sustain the stoppage for “a very long period,” the union said.

–With assistance from Paul-Alain Hunt.

(Adds company comment in fourth paragraph)

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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