BHP Billiton (BHP.US) said on Wednesday that it has reached a preliminary wage agreement with Chilean trade union leaders to avoid a potential strike at its Spence copper mine.
The Zhitong Finance App learned that BHP Billiton (BHP.US) said on Wednesday that it had reached a preliminary wage agreement with Chilean trade union leaders to avoid a potential strike at its Spence copper mine. This copper mine accounts for 1% of the world's copper supply.
BHP Billiton and the union agreed to extend contract negotiations to replace the collective agreement which expires on May 31; more than 1,100 members of the mine's main trade union will now vote on the new proposal.
BHP Billiton said that the Spence copper mine is operating normally and the company will continue to seek solutions with the trade union. The Spence copper mine produced 249,000 tons last year.
The agreement will ease concerns about upcoming labor negotiations at BHP Billiton's Escondida, another Chilean copper mine. The Escondida copper mine is more than four times the size of the Spence copper mine, and there have been lengthy strikes in the past.
As of press release, BHP Billiton was up 2.06% in the premarket to $57.97.