Energy and wages pressuring the worlds swing Cu producer. Highest cost producers will show less and less ability to raise their profits with further Cu $ increases.
mineweb.net
Chilean copper mining union seeks 5% wage hike, large bonus
By: Dorothy Kosich
Posted: '13-OCT-06 07:00' GMT © Mineweb 1997-2006
RENO, NV (Mineweb.com) --The president of the union at Codelco’s largest copper mining division said workers are seeking a 5% wage hike and a large bonus when contract negotiations begin this December.
Hernan Guerrero, President of Codelco Norte’s Union No. 3, said he won’t accept the contract terms negotiated by Codelco’s Andina Division. Two unions at the Andina Division approved a collective bargaining agreement this week that included a 3% wage increase for the next three years and bonuses of $11,974.65 each.
Andina workers now earn an average of $1,380 a month.
The Codelco Norte Division, includes the Chuquicamata mining complex and Radomiro Tomic mine which produced a combined 964,930 tonnes of copper cathodes (around 6.5% of world mine supply), along with 26,826 tonnes of molybdenum, last year.
At BHP Billiton’s Escondida, the world’s largest copper mine, workers negotiated a 5% wage increase and bonuses of $17,000 each. Guerrero said he is aiming for a deal similar to that which the Escondida workers received after nearly a month-long strike.
A total of 6,500 workers are negotiating their future contract beginning in December at state-owned Codelco, the world’s largest copper miner. The Codelco negotiations are expected to have an impact on international copper prices.
In an unrelated matter, Chilean Minister of Mines and Energy Karen Ponaichik promised “incentives and low risk” to all British companies interested in investing in Chilean mining. During a presentation this week in London, Poniachik said the Chilean government “has made the energy sector its top priority.”
Chile is building a liquid natural gas processing plant in Quintero and is contemplating developing a second plan in the north where most of the nation’s copper mines are located. Chile now imports 75% of its energy, which makes the country vulnerable to price volatility and supply interruption. |
