BHPB says all mining, stacking stopped at Spence

Production and Markets

BHP Billiton, the world’s largest mining company, said all non-essential activity at its Spence copper mine in Chile has stopped because of a strike that began on October 13.

All mining, crushing and stacking has been suspended at Spence, BHPB said in an e-mailed statement, adding that it is now “difficult” to resume talks with the workers.

The company said that strikers continue "illegally to occupy a location within the property area of the company, and accordingly making it difficult for the company to resume the negotiations without having the appropriate level of confidence on the safety and security conditions at the site”.

BHPB’s wage offer to the Spence workers is "insufficient", Andres Ramirez, president of the union representing the miners, said after government-mediated talks failed.

BHPB produced 172,685t of copper at the mine in the 12 months to end-June, and aims to reach full capacity of 200,000t in the coming year, the company said in its annual report on September 14.

Workers are demanding a 5% pay increase, and benefits similar to those offered to workers at Escondida, the world’s largest copper mine, Pedro Marin, president of Chile’s Mining Federation, said on October 26. Strikers may disrupt Spence’s operations by blocking roads to halt copper shipments if the company doesn’t listen to workers’ demands, he said.

BHPB also operates the Escondida mine.

Oct 28 (Bloomberg)