Ceasefire at World's Largest Copper Mine as BHP Strikes Deal with Union

The three-day strike at BHP's Escondida copper mine in Chile ended after management and a major union reached a collective contract agreement. The strike, which began over pay disputes, involved 2,400 workers. As talks resumed and an agreement was reached, copper prices, initially buoyed by supply concerns, fell 0.7%.

A three-day strike at BHP's massive Escondida copper mine in Chile was halted on Friday after management and a large union reached a deal, the miner said, easing concerns about a hit to global supplies of the metal.

The union, which represents about 2,400 people, began striking on Tuesday at Escondida, the world's largest copper mine, after failing to reach a deal over pay. BHP said the two sides reached an agreement after resuming talks.

BHP and Union No. 1 have come to an agreement for a collective contract proposal. Along with that, it was agreed to suspend the strike underway as of this Friday, Aug. 16 at 8 a.m., BHP said. The union declined to comment.

Under typical procedure, union leadership will meet with members to explain the proposal and seek approval. If the union moves ahead, the deal could be signed on Sunday. A main sticking point for negotiations was a union demand for 1% of shareholder dividends for the mine, or about $35,000 per worker. The company had offered a bonus of $28,900 before talks broke down.

Copper prices fell after the news and were last down 0.7% at $9,081 per metric ton. The metal, used in power and construction, is still on track for the first weekly gain in six weeks - of 2.4% - as the strike had sparked concerns about supply disruptions.

(With inputs from agencies.)