Strike halts operations at BHP's Chilean copper mine

Workers at BHP Billiton at the Cerro Colorado copper mine in northern Chile have gone on indefinite strike as negotiations to raise wages ended without reaching an agreement.

Union leaders warned on Friday that workers will go on strike if the company does not provide a better wage offer. The company proposed a 1 percent increase in real wages, which in turn was rejected by the union. Nearly 73 percent of union members who voted on Friday rejected the company's proposal. Union President Leoncio Parra said members were unhappy not only with the 1 percent increase, but also with the proposed changes in workers' activities.

All employees on the morning shift, starting at 7:35 am local time, followed the order and stopped operations at the open pit. Access to the mine was closed and the road to the mine blocked by union leaders. The union represents about 700 workers at the mine.

Meanwhile, BHP Billiton said in a statement that the strike began at its Cerro Colorado copper mine Monday under Chilean labor law. However, the company has decided to comment on the impact the strike may have on operations. Over the nine months from January to September last year, Colorado's Cerro mine produced 55,600 tonnes of copper, according to data released by Chilean state commission Cochilco Copper.

The Cerro Colorado copper mine is wholly owned by BHP Billiton and is located in the Atacama Desert at an altitude of 2,600 m in eastern Iquique, Chile. The mine is a major producer of copper cathodes for BHP. Commercial production at Cerro Colorado began in mid-1994, followed by major expansion in 1995 and 1998. Following these expansions, production at the mine was increased annually by 100,000 tonnes. However, current levels of low grade copper production are at 106 thousand tonnes per year.