London 06/09/2016 - A strike at Codelco's Salvador copper mine is a threat to the division's viability, the mining company said.
Around 60 protesters took control of Salvador, located in the Atacama region, on Sunday night, according to Codelco, preventing other workers from entering the mine.
Last week, 57 percent of Union No 2 members rejected Codelco's final pay offer while 73 percent of workers of Union No 6 accepted the offer, the company said in a release last night.
"As is public knowledge, the general situation at Salvador is critical," Codelco said, adding that the mine's ore grades are declining while its production costs have increased nearly fivefold over the past ten years.
"Hindering the normal operation of Salvador division right at a time when it is required to continue operating, increasing production and boosting cost cuts, does not allow us to ensure its viability," the miner added.
The current administration is making significant efforts to give continuity to operations while the structural solution of the future of the division has been studied through the Inca Rajo project, it said.
"This scenario, however, does not withstand neither cost increases nor changes in the continuity of the operation, but, on the other hand, requires increases in productivity and improvements in all relevant indicators," the company added.
Salvador is one of Codelco's smaller mining projects - it produced 49,000 tonnes of copper in 2015, down from 54,000 tonnes in 2014 and just three percent of the company's mining output.
Codelco recorded a loss of $97 million in the first half of the year despite lowering cash costs due to a 21-percent fall in the price of copper and a massive investment programme needed to upgrade ageing mines.
(Editing by Mark Shaw)