Chile copper workers begin nationwide strike over smelter closure

Chilean state-owned copper producer Codelco, the world’s largest, was hit on Wednesday by a nationwide strike against the miner’s decision to close permanently an allegedly polluting smelter in the country’s central zone.

Unions demand that, instead of shutting down Ventanas, the company upgrades it. Codelco’s decision followed an environmental incident that saw dozens of people fall ill, the miner said June 17. The move was later backed by Chilean President Gabriel Boric and several of his ministers.

About 50,000 copper workers, including Codelco’s employees as well as contractors, joined on Wednesday the indefinite strike, the Federation of Copper Workers (FTC), which groups Codelco’s unions, said in a statement.

The unionized workers insist the facility needs $53 million for capsules that retain gases and allow the smelter to operate under environmental compliance, which was dismissed by the government.

“Our action will continue as long as the government and the Codelco board of directors insist on the closure of Ventanas and do not greenlight the resources to allow the Codelco smelters to continue as competitive and sustainable units,” FTC president Amador Pantoja said, adding the company’s decision was rushed.

Responding to the Pantoja, Codelco’s chairman of board, Máximo Pacheco, said the closing of the Ventanas was 30 years in the making.

“We have been discussing environmental issues related to Ventanas for decades. Does anyone believe that after 30 years this was a hasty decision?,” he told CNN Chile.

Historic reinvestment plan

Chile’s Finance Minister Mario Marcel said on Wednesday that Codelco operations have not been affected by the strike as the company had taken measures to mitigate potential negative effects.

The minister also announced an historic US$583 million reinvestment plan for the copper miner this year, which includes 30% designated to 2021 utilities. There will be a similar reinvestment of utilities from 2021 through 2024, Marcel said.

Until now, Codelco has given most of its earning to the state.

Ventana’s closure will require the modification of a law that requires the Chilean copper miner to smelt minerals from the also state-owned Enami, coming from small and medium-sized companies, exclusively in the facility.

Codelco said that Ventanas’s refinery will not be affected by the measure.