Last Updated :
05 January 2010 at 12:00 IST
Codelco workers go on strike
SANTIAGO (Commodity Online) : World's biggest copper miner, Chile’s Codelco said strike by workers at its two mines disrupted overall production.
Miners at the Chuquicamata and Mina Sur mines, which together account for four per cent of the world's copper production, are calling for a 7.5 per cent pay hike, as copper prices hit a 17-month peak at more than 7,500 dollars per tonne.
Analysts said copper prices were sent higher by the strike, amid fears that market supply of the commodity will become tighter.
Both mines belong to Codelco, the state-owned National Copper Corporation of Chile, which produces around 1.6 million tonnes of copper per year and employs around 5,600 workers.
About a third of the unionised miners failed to show up when their shifts began at 5:00am (0800 GMT) on Monday. Union leaders said 95 per cent of the work force at the two mines joined the strike.
Codelco said it has contingency plans to cope with the strike, but offered no details. The company has enough copper reserves for 30 days and will be able to honour all its January contracts.
The company later made a new offer to workers, raising its proposed wage hike from 3.8 per cent to 4.0 per cent and increasing a bonus payment in a bid to end the strike.
Codelco has been beset by strikes and other worker actions in recent years, which have forced concessions from the company.
The copper mining firm could lose eight million dollars per day of strike action, analyst said.
The miners' demands for more concessions come as the price of copper, which fell significantly during the global economic crisis, has jumped in recent months amid renewed demand from China, the world's largest copper consumer.
Copper prices have rocketed by more than 130 per cent since early 2009, driven by signs of global economic recovery after the steep worldwide downturn.
Chile had a copper output of some 5.3 million tonnes in 2008, and was estimated to have produced a similar amount last year, accounting for about one third of global production.
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