Supervisors at BHP’s Escondida copper mine in Chile called off a planned strike after reaching a preliminary agreement with the company on a new contract. The mine is the world’s largest copper producer. The agreement still requires ratification by union members.
The union represents over 1,000 supervisors. They had been set to walk off the job on Wednesday morning after government-mediated negotiations failed to resolve disputes over wages and working conditions.
The initial strike threat pushed copper prices to a three-week high. LME copper rose as much as 0.8%. It reached $14,695 a tonne.
The tentative deal eased immediate concerns about a major disruption to global copper supply. Labor-related supply risks persist in Chile, where a separate strike continues at Antofagasta’s Centinela mine.