Chilean copper mining company Antofagasta and workers at its Centinela mine on Tuesday began a government mediation process after contract talks failed, a last resort before the union could go on strike.
The nearly 400 employees represented by a Centinela workers union last month overwhelmingly rejected a contract proposal from Antofagasta, causing the company to request mediation from the Chilean government.
The union is looking to make up for lower production-linked bonuses and to improve working conditions, according to union leader Luis Redlich.
“This process is a double play, making talks very complex and making people willing to go as far as it takes and begin a strike if necessary,” Redlich said, adding that the union was “always willing to talk.”
The mediation process will last for five days, but can be extended another five if both parties agree.
Antofagasta declined to comment on the negotiations but said that “dialog with our unions is the way to reach agreements.”
The miner was set to invest $3.7-billion at Centinela, but CEO Ivan Arriagada said in June the company was re-evaluating the expense after Chile’s government upped mining royalties.
“(Copper) price estimates are high, and they’re going to stay that way,” Redlich said. “Investments are going to go the same way. They have to make a decision this year, but that has to go hand-in-hand with agreements made with workers.”
In 2022, Centinela produced 247,600 metric tons of copper, according to data from the state agency Cochilco.