Chilean copper mine strike to cost BHP Billiton $30 million a day

On July 22, more than 2,000 workers launched a strike at the Escondida mine in Chile, the world's largest copper mine, in which Australian miner BHP Billiton owns a majority stake. The strike started at the mine in protest against cuts in production-related bonuses. The bonuses have decreased from $650 to $195 over the past 10 months.
 
There is no sign of a deal on July 25. Workers demand an $11,000 bonus linked to BHP's earnings, while BHP calls the strike illegal and seeks an action plan to keep its operations together.
 
BHP Billiton's supervisor of labor relations Guido Cortes said that the halt at the mine will cost $30 million and 3,000 mt per day. Combined with the production halt due to heavy rains in early July, the strike is likely to further reduce stocks. Escondida mine produces 1.1 million mt of copper annually
 
The strike at Escondida has also triggered Chilean state-owned copper company Corporacion Nacional del Cobre's (Codelco) first general strike in 18 years. More than 16,000 workers at Codelce stopped work to protest against restructuring which indicates a possible privatization.