The world’s largest copper mine, Escondida in Chile, is entering the final day of wage negotiations as operator BHP Group (ASX: BHP) raised its offer. The union representing supervisors and staff acknowledged the improved proposal but said key differences remain. The latest offer includes a signing bonus of roughly $25,500 per worker, which the union claims is "below market" given the company’s strong profits. Copper futures have surged about 35% over the past year, fueling worker demands for a larger share of mining profits.
If no agreement is reached by Tuesday, over 1,000 union members could strike as early as Wednesday. Meanwhile, talks have also resumed at Antofagasta Plc’s Centinela mine, where workers have been on strike, claiming it has disrupted operations. The unions allege that only 25 haul trucks are operating per shift, compared to the usual 67. Antofagasta disputes this, insisting operations have continued uninterrupted.
The labor disputes add to growing concerns about copper supply. An avalanche at Codelco’s El Teniente mine on Sunday has further tightened the market, as demand from data centers and power grids continues to rise. These disruptions come amid near-record copper prices, which are emboldening workers to push for higher wages while companies seek to control costs.