London 11/01/2016 - Workers are on strike at the BHP-owned Cerro Colorado mine in Chile following a breakdown in talks with the Sintracerromatoso union over pay increases.
"In accordance with labour law, work continued normally during the weekend and the strike start time corresponded to the shift starting on the morning of January 11," a BHP representative told FastMarkets.
"The company deeply regrets the decision of the workers, as the proposal made every effort to reach a mutually beneficial agreement that would ensure the sustainability of Cerro Colorado," the representative said.
According to news reports the union turned down the BHP proposal of a real wage increase of one percent.
"One percent may not be much, but we'd expect that any wage increase in this environment as a generous offer," Investec in a note said.
The company declined to comment on any impact the strike might have on production, adding that its operational review for this quarter will be published in April.
Still, the news has had little impact on the copper price - the metal was last around its cheapest since May 2009 at $4,415 per tonne on the LME
In the full year of 2015, Cerro mine produced 78,000 tonnes of copper concentrate.
(Editing by Mark Shaw)