Escondida Supervisors Reject BHP’s Final Offer, Strike Set for Wednesday

Supervisors at BHP Group's Escondida copper mine in Chile plan to strike starting Wednesday after failed contract negotiations. The union, representing over 1,000 workers, rejected BHP's offer over wages, bonuses, and working conditions. The strike could disrupt global copper supply. BHP shares traded 0.8% lower at A$60.78. Separate labor disputes in Chile are also affecting copper supply and prices.

BHP's Escondida copper mine in Chile faces a strike from 1,000 workers after contract talks failed. The union demands higher wages, bonuses, and opposes biometric data sharing. BHP maintains its offer is competitive. Copper prices have risen 38% in a year, adding pressure. A strike could disrupt supply, with Chile already facing other mine disruptions.

BHP Group (BHP) improved its wage offer to avert a strike at Chile's Escondida copper mine, the world's largest. Union leaders say the offer is insufficient, with a potential strike looming. Copper prices have risen 35% over the past year. Separately, Antofagasta (ANTO) and striking workers at its Centinela mine resume talks. Mine disruptions and supply concerns are tightening the copper market.

The Mining and Energy Union (MEU) is funding a class action against BHP, seeking compensation for up to 7,000 workers who were allegedly required to work on public holidays at BHP's Operations Services subsidiaries. The action follows a Federal Court ruling that BHP breached employment standards at its Daunia mine in 2019. BHP is challenging the legal principle in the case, with a hearing set for 2026.

Chile's Escondida copper mine, operated by BHP, saw output drop 27.6% in August to 76,100 tonnes, the lowest this year. National copper production fell 12.7% to 366,300 tonnes. BHP owns 57.5% of Escondida, with Rio Tinto and JECO Corp holding stakes. Copper prices closed at US$6.66 per pound, up 2.3% on the week.

BHP (BHP) agreed to sell its Kambalda Nickel Concentrator to Gold Fields (GFI) by 2027, subject to approvals. BHP will review its remaining WA Nickel operations by February 2027. Gold Fields will assess the facility's long-term use and offer employment to current staff. BHP's Annabelle Blom called the deal positive for employees and the community.