Codelco Reaches Early Contract Agreements with Unions

SANTIAGO (Reuters) – Chile's state copper miner Codelco announced on Wednesday that it has reached early contract agreements with unions at its major El Teniente complex, as well as the Ministro Hales division.

Union negotiations at Chilean copper mines have gained attention from analysts and investors, especially following a recent strike at BHP's Escondida, the world's largest copper mine, which led to improved bonuses for workers.

The agreements at El Teniente, one of Codelco's largest operations, involved talks with five unions, totaling nearly 3,150 workers. The new contract will take effect on November 1 and will last through 2027.

Andres Music, general manager of El Teniente, stated that the deal will implement new labor practices aimed at increasing productivity within the company.

Codelco expressed appreciation for the dialogue and understanding that characterized the negotiations, emphasizing their goal of balancing business considerations and safety with incentives and benefits for workers.

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

Codelco did not disclose specific terms for the contracts at either site.