BHP reaches preliminary deal with Escondida mine supervisors union, likely averting strike
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,The supervisors' union at BHP's (BHP) Escondida copper mine in Chile reached a tentative wage agreement with company representatives on Wednesday, paving the way to removing the threat of a strike by ~25% of direct employees at the world's largest copper mine.
The 1,000-plus members of the supervisors and staff union will vote online today, after the union temporarily suspended the start of a strike after overnight talks produced a preliminary deal that improves benefits and terms compared to an offer presented by the company earlier this week.
If members approve the proposal, the two sides will sign a new collective bargaining agreement; if it is rejected, the strike would begin Thursday morning, BHP (BHP) said.
Near-record copper prices have emboldened workers to seek a greater share of mining profits, while producers seek to contain rising costs; two unions at Antofagasta's (ANFGF) Centinela mine in Chile have been on strike for about a week.
Benchmark copper futures (HG1:COM) on the London Metal Exchange rose as much as 0.8% to $14,695/ton, the highest intraday level since September 23, as Europe's top producer Aurubis (AIAGF) (AIAGY) said huge shipments of metal to the U.S. are fueling tight market conditions.
The comments came after Benchmark Minerals reported the company offered a record premium of $347/ton to supply its customers for 2027, marking a 10% increase over this year's levels.
Copper futures pared gains on news of the preliminary labor agreement at Escondida.
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