Sociedad Quimica Y Minera said on Thursday its ongoing legal dispute with Chilean authorities over royalty payments may not be resolved until end of 2018.
They claim it won’t be possible to cut costs enough to offset the higher levies, and warn that some miners may need to pass on this new cost increase to the industrial production chain.
This is the third strike this year over profit-sharing staged by the company’s unions and it affects Southern Copper's two mines in the country — Cuajone and Toquepala.
The world's largest copper miner, Codelco, may see a boost in investment cash regardless of who wins next month's presidential runoff in Chile, as both candidates have vowed to end the state-run firm's funding of the military.
The two firms are just the latest names in a long list of companies that includes major players such as Rio Tinto, interested in grabbing a stake in Chile’s Chemical and Mining Society (SQM).