Codelco Reaches Early Labor Agreements

SANTIAGO (Reuters) – Chile’s state copper miner Codelco announced on Wednesday that it has reached early contracts with unions at its major El Teniente complex and Ministro Hales division.

Union negotiations at Chilean copper mines are under close scrutiny by analysts and investors, especially following a recent strike at BHP’s Escondida, the world’s largest copper mine, which resulted in improved bonuses for workers.

The agreements at El Teniente, one of Codelco’s largest units, involved discussions with five unions representing nearly 3,150 workers. The new contract is set to take effect on November 1 and will last until 2027.

Andres Music, general manager of El Teniente, stated that the agreement will introduce new labor practices aimed at increasing the company’s productivity.

Codelco emphasized its appreciation for the climate of dialogue and understanding that characterized the negotiations, aiming to harmonize business needs with safety, incentives, and worker benefits.

At Ministro Hales, a smaller division that produced 126,000 metric tons of copper last year, the new three-year contract will commence in December.

Codelco did not disclose specific terms for either mining site.