Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Chilean state-owned mining group Codelco said on Monday it had reached an early collective agreement with the supervisors’ union at its Radomiro Tomic mine, which accounts for more than a fifth of its copper output.
The company said in a statement that the deal, which starts in December and spans 36 months, includes goal-based and productivity incentives as well as “quality of life” benefits for supervisors, but did not provide specifics.
Nearly 90% of union members voted to approve the agreement, it said.
“The early closing of this negotiation, which is valid until 2026, will allow this work center – which has just celebrated 28 years of existence – to continue being a great contribution to all Chileans,” the world’s biggest copper producer said.
It also noted challenges facing the mine, including the construction of a desalination plant that will supply divisions in Codelco’s northern district. The firm did not specify the financial details of the contract.
According to Chile’s Copper Commission (Cochilco) Radomiro Tomic was Codelco’s second largest producing mine in 2022, accounting for 301,100 of the 1.446 million metric tons of copper the company produced that year.
(By Natalia Ramos and Alexander Villegas; Editing by Jan Harvey)
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