Base Metals Preview: Copper Eyes Recovery After Correction

Copper saw a recovery after recent correction that took prices to two week low on COMEX. Global mining action is back to the forefront now. Workers at the Escondida copper mine in northern Chile will strike unless the company addresses key issues raised during negotiations, their union said last 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.