Miner BHP requests state mediation with Escondida union in Chile

SANTIAGO (Reuters) – Australian miner BHP has requested mediation by the Chilean government with the union representing workers at its Escondida mine, the company said on Monday, a move aimed at avoiding a potential strike at the world's largest copper project.

BHP noted in a statement that the mine is operating normally and that the mediation would aim to achieve a contractual agreement for the mine's workers.

BHP owns more than half of Escondida, while Rio Tinto and JECO Corp control minority stakes.

Once the mediation is confirmed, the parties will have five working days to continue negotiations, according to the statement.

Last week, Escondida workers rejected an offer for a new collective bargaining agreement, according to the union.

The union has demanded that 1% of dividends to be distributed equally among workers, but declined on Monday to comment on the company's request for mediation.

(Reporting by Fabian Cambero; Writing by Aida Pelaez-Fernandez; Editing by David Alire Garcia)

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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