A strike by workers at the Escondida mine in northern Chile, the world’s largest copper mine, has raised concerns about the global copper market. The strike, which began after pay talks with Australian resources giant BHP fell apart, has halted production at the mine, which accounts for around 5% of the world’s copper output.
The union, representing 2,400 workers, is seeking higher bonuses, shorter workdays, and compensation tied to total years worked at the mine. BHP has offered a one-off bonus of nearly $29,000, lower than the $36,000 demanded by the union.
While a global glut in copper stockpiles is expected to blunt the immediate impact of the strike, analysts warn that a prolonged production slowdown could start to affect the market. The strike has already caused BHP’s share price to drop by around 1% in Sydney.
The Escondida mine is a crucial source of copper, a metal used in electrical wiring, rechargeable batteries, and emerging clean-energy industries. Copper prices have increased by 400% in the past quarter-century, and global demand is expected to grow by up to 2.5% annually.
AFP
