Conflict at Minera Escondida causes suspension of activities and economic tension.

The conflict between BHP Group and the No. 1 Union of Workers at Minera Escondida has entered a critical phase following the failure of recent negotiations, leading to a halt in activities at the world's largest mine. The strike, which began three days ago, involves approximately 2,400 workers and is generating concern not only among employees but also in the economic realm of the country, as Escondida accounts for about 5% of global copper production. During a mediation session held on Wednesday in northern Chile, both parties attempted to resume negotiations but failed to reach an agreement. One of the main conditions imposed by BHP to continue discussions was the suspension of the strike, but the union was unable to obtain approval from its members before the deadline set by the company, further complicating the situation. The lack of consensus has led the company to maintain its position, while the union has expressed its dissatisfaction with the situation. The union has lamented BHP's refusal to hold talks without preconditions. This obstacle has resulted in a disruption of copper production at a critical time when the industry is facing a shortage of concentrate, the essential raw material for smelting. Although BHP has stated that operations continue, the company has not specified the impact that the strike has had on production, leaving the consequences of this conflict uncertain. Escondida's history with strikes has been problematic. In 2017, the mine experienced a shutdown that lasted 44 days, resulting in a drastic reduction in production, which fell to less than a quarter of normal levels. This precedent raises serious doubts about the company's ability to manage the current situation without causing long-term damage to its operations. Chilean Minister of Economy Nicolás Grau has expressed concern about the prolonged strike, considering the potential impact it could have on the national economy. Copper production is vital for Chile, and any prolonged interruption could affect the country's economic growth. Grau has urged both parties to find an agreement that avoids irreparable damage. The union has accused BHP of bad faith for making a new offer public before its terms were discussed, which created even more tension. The company defended its position, arguing that it acted this way due to the absence of union negotiators in the discussions. This lack of communication and understanding has led to a stalemate that seems to have no solution in sight. Meanwhile, BHP has opted to implement a contingency plan that includes replacing striking workers with employees not involved in the collective bargaining process. This decision has been viewed by the union as an act of "serious anti-union practices," adding a new layer of tension to an already complicated situation. In its statement, the union assured that it has sufficient financial backing to sustain the strike for an extended period, suggesting that the company will face a considerable challenge if it expects workers to back down without a satisfactory agreement. The situation is becoming increasingly unsustainable, and the pressure on BHP to negotiate effectively is mounting. In this context of uncertainty, the future of the Escondida mine and its workers remains uncertain. The lack of an agreement and the prolongation of the strike could have significant repercussions, not only for the company but also for the Chilean economy as a whole. As both parties remain firm in their positions, time becomes a crucial factor in the search for a solution that benefits both sides and restores production at the mine.