Codelco faces plunging copper prices, work stoppage in April
Already beset by dropping demand for its copper ore product, Chilean state copper miner Codelco also faces a possible 24-hour work stoppage in the near future.
The mining company's umbrella union for workers held an extraordinary assembly on Friday, March 15, 2013, to vote regarding a stoppage at all units of the biggest copper producer in the world. After the meeting, the coalition announced its decision to implement a 24-hour work stoppage before early April. To prepare for that strike, the coalition will hold separate assemblies with each production unit and discuss the details.
More than 20 unions at Codelco comporse the coalition. The members have expressed their displeasure with the company’s management.
Codelco owns more than 11% of the copper reserves in the world. A previous 24-hour work stoppage in July 2011 cost the Company $40 million.
To make things worse for the copper miner, the prices of its main commodity had plunged to their lowest level within the past four months. The trigger for the drop in copper prices is considered to be the universally-criticized bailout plans for Cyprus, which brought up unpleasant questions about Europe's economic growth and ability to stop its debt problems from spreading.
Recommended additional reading:
STM, ESA, Norway developing very high-throughput TDM/TDMA Hub modem
