Strike Commences at World's Largest Copper Mine Amid Pay Dispute

Workers at BHP's Escondida mine in Chile began a strike after pay negotiations failed. The union, representing most frontline workers, demands higher pay amidst strong copper prices. BHP activated a contingency plan, recalling memories of a 2017 walkout that impacted production and global prices. Analysts remain hopeful for swift resolution despite potential wider labor disputes.

Workers at BHP's massive Escondida mine in Chile launched a strike on Tuesday after wage negotiations with management broke down, threatening operations at the world's largest copper mine. The strike, organized by a union representing about 2,400 workers, seeks increased profit sharing amid high copper prices.

In response, BHP initiated a contingency plan. The strike, reminiscent of a major 2017 walkout that disrupted production and global copper prices, follows the union's rejection of BHP's latest offer. However, analysts remain cautiously optimistic about a quick settlement, citing lower demand from China.

Despite BHP's $28,900 bonus offer per worker, the union is pushing for a share of shareholder dividends amounting to roughly $36,000. Both sides have navigated through government-mediated talks without resolution, and further labor disputes in Chile could arise.

(With inputs from agencies.)