Union members at the Escondida copper mine in Chile voted to strike after contract negotiations collapsed. Workers were pulled from the mine on Tuesday, August 13.
The Escondida mine produces about 5% of the world’s copper supply, something that is needed as the United States and the rest of the world focus on creating clean energy projects and switch toward electrification.
Copper prices have not fluctuated since the strike, but the length of the strike could have a potential impact on pricing. When workers at the Escondida mine went on strike in 2017 for 44 days, the company was forced to announce that it would not be able to fulfill its contracts. The company did the same thing in 2006 during a 26 day strike.
A global excess of copper supplies right now should keep prices steady in the short term.
The union is asking for a higher percentage of the mine’s profits.