The world’s largest copper deposit, the Escondida mine, has been in trouble recently. The Copper mine located in Chile has seen negotiations for the new labor contract between workers and the company for the last two months. The procedure is secret.
Both the covid situation and the shortage of copper storage have pushed the powerful worker union to start to negotiate with the company. With the operator BHP delivering a final offer on Monday, this case entered into a crucial phase.
From the BHP statement, we can see that the company proposes to improve the current contract by adding new benefits in the highly valued area. However, both the company and the union have not responded to requests for comments yet.
The negotiation will highly impact the supply of copper, and eventually the price. Hopefully, we can see the results of the final offer; however, we do not have any clues of how the negotiation ends. The union has prepared for this, earning its benefits for a long time. A strike equivalent to or longer than the one in 2017 may or may not take place.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
cryptocurrency, precious metals, technical analysis, fundamental analysis