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Chile Collahausi copper mine strike ends (AAUKY, XSRAY, JJC)

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A labor strike at the world's third-biggest copper mine -- Chile's Dona Ines de Collahuasi -- has finally ended. The mine produces roughly 500,000 metric tons of copper annually and is controlled by Anglo American plc ( AAUKY , quote ) and Xstrata plc ( XSRAY , quote ).

The two companies have not said how much copper production was lost or whether the output loss will be able to be recovered, but at the annualized rate each day the mine was offline could easily have knocked 1,400 tons a day or $2.8 million out of their output.

The strike began Monday when a group of mine workers stopped work to protest what they said were unmet contract demands. They had previously staged a one-day strike earlier this year. In 2010, the Collahuasi mine was the site of a 33-day work stoppage during the collective bargaining process. This strike was the longest-ever strike at a privately held copper mine in Chile.

The strike just ended was considered to be illegal according to Chilean labor laws because the workers were not negotiating a new contract.

With multiple copper mines either shut down for labor disputes or suffering other outages, copper prices and the JJC ( quote ) have gotten significant support. This strike just supports that thesis.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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