US Markets

Chile's Codelco reaches contract agreement with El Teniente supervisors

Chile's state-owned copper miner Codelco said on Monday it had reached a contractual agreement with the supervisors' union at El Teniente mine, reflecting the new constrained realities of the industry following the economic blow dealt by the COVID-19 pandemic.

By Aislinn Laing

SANTIAGO, Sept 14 (Reuters) - Chile's state-owned copper miner Codelco said on Monday it had reached a contractual agreement with the supervisors' union at El Teniente mine, reflecting the new constrained realities of the industry following the economic blow dealt by the COVID-19 pandemic.

The company said in a statement the agreement that supervisors would not receive a pay rise in the coming contract was backed by 88% of the union's members and the signed deal would remain in place for 36 months from Nov. 1, 2020.

"The responsibility and shared vision between the El Teniente supervisors and the company to meet goals and achieve the best results for Chile prevailed," said Codelco, which hands all its profits to the state.

In 2019, El Teniente generated around $1.046 billion in revenue and this year anticipated "a similar amount," the company said.

The world's biggest copper miner has largely maintained production since the pandemic outbreak in March with a skeleton staff and all non-essential work halted, though June and July saw drop-offs in output. The company is also facing a combination of declining ore grades and costly overhauls of ageing mines.

(Reporting by Aislinn Laing; Editing by Sandra Maler and Lincoln Feast.)

((Aislinn.Laing@thomsonreuters.com; +56 223704250;))

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

Latest US Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More