SANTIAGO (Reuters) – Chilean state miner Codelco said on Wednesday it has reached early contract agreements with unions at the large El Teniente complex, as well as its Ministro Hales division.
Union negotiations at Chile’s copper mines have been closely watched by analysts and investors since a strike last month at BHP’s Escondida, the world’s largest copper mine, resulted in an improved bonus for workers.
The agreements at El Teniente, one of Codelco’s largest units, included talks with five unions, representing nearly 3,150 employees. The new contract takes effect on November 1 and runs until 2027.
Andres Music, general manager of El Teniente, said the deal will introduce new labor practices poised to increase the company’s productivity.
“Codelco appreciates the climate of dialogue and understanding in which the negotiations were conducted,” the company said in a statement, noting that it sought to balance business variables and safety with incentives and benefits for employees.
At Ministro Hales, a smaller division that produced 126,000 tonnes of copper last year, the new three-year contract will come into effect in December.
Codelco did not detail the specific terms for either mine site.
