Management at Escondida digs in

BHP Billiton (BHP-N, BLT-L), the largest stake holder in Escondida, the world’s largest copper mine, has broken off talks with striking union members and has halted operations at the Chilean mine.

Management at the mine says it was forced to take the more drastic measures because striking workers had put the health and safety of workers at risk by blocking access roads to the mine.

Escondida had still been producing roughly half of its normal output before the announcement of a complete halt to operations. It said it was losing roughly US$16 million in net profit per day, before stopping production all together.

The strike has now carried on for 12 days with the roughly 2,000 union-members demanding a raise and a $30,000 per worker bonus that is connected to the run on the copper price over the last year.

While talks between the two groups had been ongoing, management at Escondida says the union is breaking the rules of engagement by carrying on with demonstrations during negotiations, while the union counters that the company has not budged on its offer, while it has softened its demands for a raise.