Extended Strike at BHP's Escondida Mine Raises Global Copper Prices

A strike at BHP’s Escondida mine in Chile has entered its third day, pushing copper prices higher due to supply concerns. Initial talks to resolve the issue have stalled, and benchmark copper prices have risen. The strike has disrupted operations and could lead to further supply issues if unresolved.

A strike at mining giant BHP's significant Escondida mine in Chile has entered its third day, driving up global copper prices due to growing concerns about the supply of the red metal.

Efforts to resolve the standoff, including an initial meeting between BHP and the worker union on Wednesday, have so far failed to yield a breakthrough, leaving miners firm in their demand for a larger share of profits. Benchmark three-month copper on the London Metal Exchange saw a rise of over 2.2% to $9,169 per metric ton on Thursday, with mining shares from companies like Rio Tinto, Southern Copper, and Freeport-McMoRan also experiencing gains.

The Escondida mine, responsible for nearly 5% of global copper supply in 2023, has been forced to halt operations and declare force majeure in previous strikes. BHP has stated that operations continue under a contingency plan while the union reports that key facilities remain offline. Both parties have expressed a willingness to return to formal negotiations but remain deadlocked over the terms, with the union refusing to pause the strike as requested by BHP. Hundreds of workers have also set up camp at Puerto Coloso, BHP's exclusive port.

(With inputs from agencies.)