Copper Gains Nearly 1% On MCX

Indian Copper gained by 0.92%, to Rs 421 per kg as a recovery after recent correction continued ahead of weekend. Global mining action is back to the forefront now. Workers at the Escondida copper mine in northern Chile will strike from next week unless the company addresses key issues raised during negotiations, their union said Thursday, after members voted overwhelmingly reject the latest offer from management. Around 84% of the votes cast in the ballot were in favor of taking strike action after the BHP-controlled companys offer failed to match union demands for a 4% pay rise and bonuses worth 4% of the facilitys profit, the union said.

The worlds largest copper mine by production, Escondida produced 630,000 mt of copper in cathode and concentrate during the first six months of 2018. New labor laws banning the use of replacement labor would mean that a strike would probably halt production at the open pit operation for its duration. In a statement, union officials said they would not seek the five days of government mediation allowed under Chilean labor law and gave the mining giant until August 6 to improve their previous offer, which included a 1.5% above inflation pay rise and bonuses worth Chilean peso 15 million.

Both sides are keen to avoid a repeat of last years 43-day strike at the mine, the longest in Chiles mining industry in several decades, which cost the company around $ 800 million in lost production and reduced economic growth in Chile in the first quarter of 2017. But with a significant gap between the two positions, Escondida said it is revising contingency plans to minimize the impact of a strike and ensure the security of its employees and installations.