Industry Trend Analysis - Increasing Efficiency To Limit Strike Contagion - AUG 2015

BMI View: Codelco's investment drive towards increasing efficiency at the firm's copper mines will limit contagion effects of ongoing mine strikes.

Despite ongoing strikes at Chile's state-owned Corporacion Nacional del Cobre (Codelco) copper mines, production will be unaffected as continued investment into increasing efficiency at existing mines will maintain production growth over the coming years. On July 21 2015, the Confederation of Copper Workers (CTC) organised a strike against Codelco to demand better pay and benefits for the union's contract workers, including cleaners, miners and drivers. However, Codelco has refused to meet demands as the firm believes the mine service firms, which hire these workers directly, are responsible. The strike has forced Codelco to halt operations at the firm's Salvador mine, located in the country's northern Atacama region.

However, we believe the strike will not affect the firm's copper output for two key reasons.

  • Production Concentrated In The North
    Chile - Copper Mines
    Source: Mining Technology, BMI

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