Supervisors at BHP’s Escondida mine in Chile approved a new 36-month collective agreement, averting a strike at the world’s largest copper operation.
The agreement followed overnight negotiations after talks initially failed and the union had warned that a walkout could begin on Wednesday. BHP said the contract improves fixed and variable compensation, existing benefits and bonuses. The package includes final payments and a low-interest loan worth about $30,000 per worker.
Escondida continued operating normally during the negotiations. The mine is operated by BHP in partnership with Rio Tinto and Japan’s JECO, and the strike threat had supported copper prices alongside low exchange inventories and a separate stoppage at Antofagasta Minerals’ Centinela operation.
The agreement removes one immediate risk to global copper supply, but Chile’s producers remain exposed to other disruptions. A risk index covering 14 major mines estimated that an average 5. 2% of output was vulnerable to labor, weather, geological and operational threats, with exposure ranging from 2. 6% to 9%; Escondida’s score was 7.
El Teniente was rated the most exposed operation in the risk assessment, at 9%, while Los Pelambres was assigned 8%.