London 31/05/2016 - [Update to include union leader comment]
Workers have voted to strike at South 32’s Cerro Matoso ferronickel mine over a wage dispute.
Members of the Sintracerromatoso mining union voted by 386 ballots for industrial action out of a total 387 cast, according to a statement on the union’s social media.
"Sintracerromatoso presented a list of demands and the company has refused to attend the statement but it is intended that workers accept impaired benefits in health, education, extralegal bonuses and compensation," union president Domingo Hernández said late on Monday.
The strike would take place from June 12, it said.
A South32 spokesman also confirmed that union members had voted last Friday to take strike action.
The company remains engaged with the union members to reach a resolution, he told FastMarkets.
“We are currently considering our options in the event of a strike but remain hopeful that a negotiated outcome can be still achieved that’s in everyone’s long-term interests,” he said.
The Cerro Matoso mine is facing “challenges” in the current market and additional costs would put further pressure on operations, he added.
The mine, which was part of BHP Billiton's 'non-core' assets spun off to form South 32, has a full year production guidance of 36,500 tonnes of payable nickel.
Last year, BHP was forced to declare force majeure on nickel contracts from the mine, after workers protested the laying off of 6 workers for participating in industrial action.
But in February South 32 announced that it would be axing 350 jobs at the mine, 18 percent of total headcount, as part of cost reduction measures.
A number of nickel miners have announced production stoppages since the beginning of this year on low nickel prices. This includes Brazil’s Votorantim, Australia’s Mincor Resources and Panoramic Resources, and Australia's Mirabela Nickel which operates the Brazil Santa Rita mine. Australia’s Queensland Nickel is also set to be liquidated.
The London Metal Exchange three-month nickel price has tumbled by around 60 percent over the past year. It was last at $8,490 per tonne on Tuesday, up $70 from its previous close.
(Additional reporting by Vivian Teo)