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 miner Codelco, the world’s No. 1 copper producer, said on Monday it reached contract agreements with three unions, putting off the risk of a strike at the state-run giant.
Codelco reached an early agreement with two unions at its Ventanas division, a copper refinery in the town of Ventanas about an hour from Valparaiso, the miner said in a statement. The 36-month contract offers were accepted by more than 70% of those who voted.
In Santiago, the supervisors’ union, which had been in a formal negotiation period with the company, agreed on a 30-month contract with 92% of the vote.
Codelco said the three new agreements “respond to the current business context and seek to increase the company’s competitiveness,” though it did not disclose their financial details.
The miner is going through a historic production slide due to delays in progress on so-called structural projects, which seek to counteract a dip in deposits’ mineral grade.
(By Fabian Cambero and Kylie Madry; Editing by Sandra Maler)
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