Santiago de Chile (AFP)

The main union at the Escondida mine, which produces the largest amount of copper in the world in northern Chile, announced on Friday that its members had agreed to a deal with the Anglo-Australian group BHP to avoid a strike.

The union, which brings together more than 2,000 workers, said its base had approved "almost unanimously" an agreement proposed by management for a new collective agreement, and canceled a strike notice it had filed on July 31. .

"This afternoon, after the almost unanimous acceptance of our base, we formalized the signing of our new collective contract, which includes all the gains obtained during the negotiations," said the union.

The company also confirmed the agreement and clarified that the negotiated terms will be in effect for 36 months.

"This new agreement will allow us to implement a series of productivity measures that will help meet the challenge of maintaining our competitiveness over time," said Cristóbal Marshall, a manager of Escondida / BHP.

"It is therefore much more than the handing over of a bonus."

Neither the company nor the union have released details of the deal, but local media report a productivity bonus of more than $ 23,000 and various benefits.

Workers at the Escondida copper mine (Chile), during their strike, February 20, 2017 Franceso DEGASPERI AFP / Archives

The miners demanded a one-off bonus in recognition of their work during the Covid-19 pandemic, "equivalent to 1% of dividends received by shareholders", as well as a career plan and educational benefits for their children .

According to the union, the Escondida mine expects to generate more than $ 10 billion in revenue this year, amid a historic rise in the price of copper, which has exceeded $ 10,000 per tonne on international markets.

In 2017, workers in Escondida staged a 44-day strike, the longest in Chilean mining history.

This social movement had resulted in $ 740 million in losses for the company and a contraction of about 1.3% of Chile's GDP.

Owned by the Anglo-Australians BHP (57.5%) and Rio Tinto (30%) as well as the Japanese Jeco (12.5%), this open-pit mine is located in the Atacama desert, in the north from Chile, at an altitude of more than 3,000 meters.

About 1.1 million tonnes of copper are mined there per year.

Chile is the world's largest producer of copper, with 28% of world production.

This mineral, much of which is exported to China, the world's largest consumer, represents 10 to 15% of the South American country's GDP.

© 2021 AFP