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Latest on the Chilian strike
BHP Escondida Mine Union Ready to Hold Out 30-60 Days (Update3)
By Jeb Blount
Aug. 23 (Bloomberg) -- Striking BHP Billiton miners in Chile said they are ready to extend their walkout at the world's biggest copper mine by another six weeks unless the company improves its contract offer.
Miners at BHP's Escondida, who have been on strike since Aug. 7, are ready to hold out for 30 to 60 days after yesterday lowering their wage and bonus demands, said Luis Troncoso Munoz, president of the Escondida miner workers union.
Prices for copper, Chile's biggest export, have quintupled in four years on surging demand for the metal from China, prompting mine workers to seek a larger share of mining profits. BHP today announced second quarter profit of $6.1 billion, the largest quarterly net income in company history and the largest ever for a mining company. The company also plans to buy $3 billion of its own stock from shareholders.
``The company will lose if they try to break off dialog and hire outside workers,'' said Toncoso Munoz in an interview at his office in Antofagasta. ``We really don't understand why they are taking such a tough line when they are making such large profits; the amount we are asking is nothing compared to the amount they are giving back to shareholders.''
Workers are seeking a wage increase of 8 percentage points above inflation, down from a previous demand for a 10-point increase, union spokesman Francisco Aedo said yesterday in a phone interview from Antofagasta. Workers also seek a bonus of 10 million pesos ($18,792), down from 16 million pesos, he said.
BHP Australian-traded shares fell 36 cents, or 1.3 percent, to A$28.39.
Precedent
The demands at Escondida are going to be repeated in contract negotiations underway or expected to begin before the end of the year, Troncoso Munoz said. His union and those representing workers at BHP's Spence Mine in northern Chile and at mines owned by Codelco, plan to use any Escondida agreement as a benchmark for their own, he said. Chile's government-owned Codelco is the world's No. 1 copper producer.
The union at Escondida is ready to renew talks at any time, Troncoso Munoz said.
Copper futures for December delivery fell 1.05 cents, or 0.3 percent, to $3.4675 a pound on the Comex division of the New York Mercantile Exchange. Prices have more than doubled in the past year.
BHP has been calling workers, seeking to rehire them as allowed under Chilean labor law, said Mauro Valdes, vice president of corporate communications with BHP in Santiago. There have been no talks between the union and BHP since the union rejected BHP's last offer Aug. 21.
Grievance
The union said Escondida management has tried to undermine worker's resolve to continue the strike in the phone calls to them and their family members.
``They are trying to scare the wives and children of workers into thinking that the strike will lead to the loss of their jobs,'' Troncoso Munoz said, as he left the union offices to file a grievance over the issue.
``They do have the right to try to hire new workers or talk to strikers, but we consider their tactics improper and unconstitutional,'' he said.
To contact the reporter on this story: Jeb Blount in Antofagasta, Chile at jblount@bloomberg.net
Last Updated: August 23, 2006 18:23 EDT
I don't know about everyone else but it really has been a boring summer in the market. I finally get involved in a merger EZM\LUN.to and it looks as though EZM gave it away with the rate I will be getting for my shares. Still may sell before the 19th but will wait to see if another bidder pops the question.
In the meantime anyone want to predict the next junior miner buyout\merger within the industry. 1 pick per ID. I am going with RNO because of the nickel shortage that everyone is talking about.
I happened across these questions on the Yahoo board does anyone know the answers
If there was another bidder out there looking to make a higher bid what would be the drop dead last date to publically announce their intentions? Wouldn't it have to be prior to EZM mailing out the vote paperwork to it's shareholders? Also what would be the last day of shareholder of record to cast a vote be?
anyone ever look into either of the following OZN or RIC
I was thinking about this strike an I wonder at what point BHP not offering at least 10% raise plus bonus equals the 40 to 60 % lost revenue from not having a fully functional mining operation. If there is anyone out there that can crunch the numbers that would show approximately when BHP would need to settle by.
Ok did I miss the reason for the .21 jump? I was to busy trying to work and read all the posts dealing with EZM and their buyout. Really hoping a larger miner comes along and ups the ante on EZM as many are mad at t5he cheap buyout offer that management likes. Someone must be getting their pockets lined when you sell out without a premium from the buyer. For once I hope Cramer mentions it on his show so it can jump some more before I sell. Can't really come to terms owning a stock (LUN) that has mines in both Iran and Russia. My patriotism just doesn't allow it. Guess I will never be a millionaire but at least i can sleep good at night.
Takeover rumours boost EuroZinc
Shares rise 9% to close at 52-week high
Interesting article off the yahoo board
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Font: * * * * Lori McLeod, Financial Post
Published: Saturday, August 19, 2006
Takeover rumours gave shares of EuroZinc Mining Corp. a big boost yesterday, with research from BMO Nesbitt Burns suggesting the base metals miner's take-out value could be in the range of $4.25 to $4.60 per share.
"Word on the Street is that a deal is brewing," said a source, who asked not to be named.
A EuroZinc spokeswoman declined comment.
EuroZinc's shares rose 9% yesterday to close at a 52-week high of $3.42 in Toronto, on four times their average daily trading volume. At this time last year, the stock was trading well under $1 per share.
A report from BMO's hedge fund sales department puts EuroZinc's net asset value at $3.54 per share. It then added a takeover premium of 20%-30%, putting the miner's potential sale price as high as $4.60 per share.
"If a multiple bidder scenario were to materialize, the premium to NAV [net asset value] could rise," further boosting the price EuroZinc could fetch, according to the report.
Canadian miners Aur Resources Inc., Inmet Mining Corp., and Lundin Mining Corp. might all interested, as could Sweden's Boliden AB, according to BMO.
EuroZinc's primary asset is the Somnicor mine in southern Portugal, Europe's largest underground copper mine. It also owns an idled zinc mine in the region.
Merger and acquisition in the mining sector has been heated lately, as prices and demand stay strong and inventories remain low.
EuroZinc also appears to trade at a discount to its peers, the report said, which could make it an especially attractive takeover candidate.
© National Post 2006
Well Monday could be very interesting for EZM as there is a rumor of a take over of it. I would love it if a bidding war started. Almost sold my shares (15M average cost $2.34)in May but for some reason changed my mind and suffered with the price drop through the summer months which erased a 50% gain to a lose at one point back to a 29.67% with Fridays $3.03 close.
Takeover rumours boost EuroZinc
Shares rise 9% to close at 52-week high
Article Tools
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Font: * * * * Lori McLeod, Financial Post
Published: Saturday, August 19, 2006
Takeover rumours gave shares of EuroZinc Mining Corp. a big boost yesterday, with research from BMO Nesbitt Burns suggesting the base metals miner's take-out value could be in the range of $4.25 to $4.60 per share.
"Word on the Street is that a deal is brewing," said a source, who asked not to be named.
A EuroZinc spokeswoman declined comment.
EuroZinc's shares rose 9% yesterday to close at a 52-week high of $3.42 in Toronto, on four times their average daily trading volume. At this time last year, the stock was trading well under $1 per share.
A report from BMO's hedge fund sales department puts EuroZinc's net asset value at $3.54 per share. It then added a takeover premium of 20%-30%, putting the miner's potential sale price as high as $4.60 per share.
"If a multiple bidder scenario were to materialize, the premium to NAV [net asset value] could rise," further boosting the price EuroZinc could fetch, according to the report.
Canadian miners Aur Resources Inc., Inmet Mining Corp., and Lundin Mining Corp. might all interested, as could Sweden's Boliden AB, according to BMO.
EuroZinc's primary asset is the Somnicor mine in southern Portugal, Europe's largest underground copper mine. It also owns an idled zinc mine in the region.
Merger and acquisition in the mining sector has been heated lately, as prices and demand stay strong and inventories remain low.
EuroZinc also appears to trade at a discount to its peers, the report said, which could make it an especially attractive takeover candidate.
© National Post 2006
Is it me or has anyone else noticed that the London Cop supply has been increaseing at a steady pace all while the Chile strike is on. Any articles on the Kitco site regarding the strike seem bearish on the price of cop and the strike ending. Looks like they want to keep the price down so as not to feed the strikers requests. Eveyday the headlines on Kitco say London copper prices lower on anticipation of strike settlement. I hope those workers stay out for 2 months rather then cave in to the low offering menagement is throwing on the table.
Well I will most likely pull the trigger on the buy tomorrow and use the funds I had set aside to buy AZK in Oct to buy CGR. I'll watch the 1st hour and see if it continues to slide if not then its time to buy some.
Hey EZ2< what's the deal with CGR? Why the sudden sell down? Waiting to pull the trigger on buying some but it keeps dropping, plus their was heavy trading today in it. Did I miss some bad news?
Thnaks for the insight, really thought I had a grasp on all this till last Thurs, LOL, It's like watching the pot boil, NXG needs to buy someone to fill the gap in prod, EZM is becoming cash heavy so they need to buy or be bought, Almost pulled the trigger on buying some CGR today but my gut told me to wait, TGB dropped like lead in the ocean last week, can't understand that management team and their plan going forward since they have caused that shareprice to drop 50% since the end of May. My hands are somewhat tied since I am using a brokerage account and have to wait after I sell till the funds come in from the sale. Sometimes 6 days can be an eternity.
I have a quick question for the old pro's on this board. If and when NXG makes an offer to purchase another mining entity, won't the price drop at 1st for NXG? I realize they need to fill the mining gap with such a purchase but won't the street drop the share price at 1st or is it such that because we all know a purchase (non-hostile) would add so much value that NXG as well as the company being bought should climb. Just trying to lay out some buying plans for the next couple of months and would like to purchase more NXG after they announce a buy.
Got spanked last Thurs with TGB and may need to purchase some to average down my cost in the short while as I can't see it climbing back to where I need it to be with the management acting like idiots the last 2 Q's. Their 30 mil bond deal only makes others rich an not the Little shareholders.
Just saw this before leaving for the day and found it interesting
'Fatigue' in metals group could yield quality stock picks
By: Dorothy Kosich
Posted: '10-AUG-06 05:00' GMT © Mineweb 1997-2006
RENO--(Mineweb.com) Although copper prices reached a four-week high Wednesday due to the Escondida labor disputes, commodities investors may soon discover that "an air of fatigue, if not despondency, has enveloped much of the metals group."
While "commodity prices are excellent across the board, and appear well-supported," Citicorp analysts wrote, the mining industry is not without its problems. In its "Metals & Mining Prospects" report released Wednesday, Citicorp declared that "we do not expect prices to rise from current spot levels (gold excepted.)"
As the challenging macro environment cools, however, it will not prove hostile for metals. In fact, Citigroup believes that it will favor "quality, best-of-breed names, over the turnaround stories that dominated in the early, commodity momentum phase." Citigroup analysts picked Newmont Mining among gold mining stocks, and Arch Coal, CONSOL Energy and Foundation Coal among the coal mining stocks.
Worldwide copper is struggling with a series of supply-side outages, as a dogfight has developed during copper ore contractor negotiations between mining and smelting companies in Asia. Theses events follow a series of at least 16 shortfalls totaling 317 kT year to date, according to Citigroup analysts.
In the meantime, nickel is suffering similar woes as mergers and acquisition activities among nickel producers may be ending, and workers settle in for potentially months-long strike at Canada's massive Voisey's Bay nickel mine.
COPPER COMMODITIES
Since total exchange copper inventories hit a high at the beginning of March, they have declined 21.8% to currently stand at 162 k. Citigroup explained that the total stock ratio, including estimates of metal held by producers and consumers, still stands at a "extremely low level" of 2.6 weeks consumption vs. 4.6 weeks as of last December. Citigroup estimated at least 330 kT of copper has been lost to supply disruptions since the beginning of this year. In addition to labor disputes, copper markets face "falling grades worldwide, a dearth of large new mines in the near term, water shortages in northern Chile, and a leftward lurch in LatAm politics," according to the metals analysts.
Citigroup forecasts that exchange copper inventories will not be restocked to a meaningful level until 2009. Meanwhile, they predict that the current market deficit will continue through this year, roughly balance out in 2007, and again fall into deficit in 2008. "Our sense is that the question of demand destruction and substitution, is more relevant than replacement value and the timetable for new mine capacity adds."
Copper-smelting margin negotiations generally take place around the end of the year although some contracts are currently being negotiated. NikkoCitigroup analysts suggested earlier this month that "the major obstacle to (smelter) negotiations is that BHP Billiton is campaigning for benchmarks that would support contract terms of greater advance to mining companies."
Soaring copper smelting costs (TC/RCs) prompted Escondida's operator BHP Billiton to propose restructuring terms on new smelting contracts to remove "price participation" (PP). Japanese and Chinese smelters have opposed this move because it would impact margins. However, Citicorp doubts that BHP Billiton will be successful in abolishing PP in its contracts. "If the smelters are successful in retaining price participation in the new TC/RC structure," Citigroup wrote, "this implies that industry participants expect supplies of copper concentrate to increase, with negative implications for the copper price."
TC/RC is the amount paid by mining companies to have their copper ore processed by a smelter into a saleable metal. Since copper ore supply is not keeping abreast of demand growth, the spot market TC/RC is declining. PP is a smelting margin added to TC/RC, which fluctuates in tandem with the LME copper price, according to NikkoCitigroup of Japan. A rise in copper price improves margins, while a fall in the price depresses earnings.
"While we expect that demand for copper, particularly in developing nations, will continue to expand steadily, "NikkoCitigroup metals analysts in Japan suggested, "we think that delays in copper mine development and realignment in the industry are leading mining companies to adopt strategies aimed at boosting their share of output, so that, while their price bargaining position may actually improve, it is not likely deteriorate."
NICKEL COMMODITIES
Citigroup asserted that "nickel miners are running flat out, and even a modest supply-side outage could have profound implications." The great risk to nickel over the long term is under-supply and substitution, they added. In the short-term, the initial impact of the strike on the new Voisey's Bay nickel/copper mine will be somewhat muted by large stockpiles and in-process inventories. However, Brazil's CVRD has announced it will delay its two nickel development projects until at least 2009 due to permitting and capital cost overruns.
Year to date, nickel prices have increased 110% due to higher stainless steel production. Meanwhile, LME nickel inventories have fallen 84% to stand at 6 kT since they hit a high at the beginning of February. "Debate continues as to whether the nickel market is truly in balance, or whether tight supplies are capping demand and forcing substitution through the price discovery process," the analysts wrote.
Citigroup said stainless steel demand and aerospace and gas turbine nickel applications will keep nickel demand strong. The analysts' nickel forecast for 2006-2008 are $7.68/lb, $7 and $4.50. Quarterly price forecasts are $8 for the remainder of this year.
GOLD COMMODITIES
Citigroup analysts feel "gold is at the crossroads, having corrected sharply from highs above $714 per ounce set mid-May. ...Gold is now wrestling with classic questions on inflation, interest rates, and currencies--and new ones on the cyclical context, asset class correlations, the physical market and the role of miners."
The analysts remain positive on gold, "based on a mix of supply/demand and macro/monetary catalysts." Citigroup gold forecasts for 2006-2008 are $632/oz., $700 and $750. "We would not be surprised to see a test of the gold highs of $850/oz," they added.
COAL COMMODITIES
While admitting that coal company earnings were dismal, Citigroup remains supportive of coal markets and "believe there is a positive, multi-hear thesis for the coal group, based on mining capacity constraints, transport bottlenecks, think utility stockpiles, the possibility of natural gas returning to the $10/MMBTU range, and above-trend global steel production."
With the hot summer temperatures spiking energy demand even higher, analysts feel coal inventories are likely to see a significant drawdown. Meanwhile, metallurgical coal markets appear to be tightening with a production push at steel mills.
I wamt to wish all the NXG longs a good luck tomorrow as I will be away from a PC all day. As for any of you shorts who monitor this board I hope you have to get a loan to cover your short position. Haven't decided if I want a friend to text message me the sp every 1/2 hour or just go cold turkey tomorrow. At least I will be able to get my hands on the TGB report prior to heading out to the charity Golf tourney. Won't be able to read the NXG or ESM until after midnight tomorrow. Still think something got out of the bag today to drive the price down so much. If we gain it all back tomorrow then I would have to think that the MM's did it to get stops out and pick up shares cheap.
I would go one step further, after they are released from prison they are banned from dealings involving any stock trades for the rest of their life. Just like hackers who are convicted can never use a PC again. I am proud of the fact that I have never stoop to the low side when having inside info that in the past would have set me up to retire 10 years ago if used improperly. Work does suck some times but never that much that I would wish I had traded stocks on prior info. Those employee's in companies currently under investigation for the option back dating should be sent to jail for 20 years without parole IMO and the companies fined 10% of their gross revenues. If the punishment is so hard that it sounds overdone then and only then will people think twice about breaking the law.
Can someone explain the drop in sp? Seems like panic selling. I may have to use my Oct dry powder for this great buying chance.
Either someone knows or people are becomming afraid of the unknown to a higher degree. I still think the Chile strike will last for a while since what the workers want is no where near what the company has begun to offer. Last week I had really believed NXG would have crossed the $4 mark by yesterday with all that is happening to favor mining stocks. I am still long NXG but haven't been able to dump two other mining stocks because they haven't reached what I wish to sell at. Maybe after the May sell off this year people are a little more gun shy of jumping in on the metals train. If NXG doesn't announce another take over candidate at the CC I will be sticking by what I said to EZ2 a few weeks ago come OCT.
Does anyone see a junior miner or smaller company jumping more then 15% so far today, just curious if the cat was out of the bag maybe that is where to look
If they do release another take over target name at the CC tomorrow it would not be good as the slippage today would indicate that someone let the cat out of the bag. being in the finacial services industry I know how hard it is not to tell family about upcoming mergers etc, even my wife yells at me when she reads about us buying another bank and me not saying anything to her prior. The thought of someone 6'8" named bubba sleeping in the same locked room as me has always crossed my mind and kept me silent LOL.
Regarding todays volume and price does anyone else believe as I do that they are trying to take out any stops so as to accumulate prior to great earning? Don't understand why the sell off is taking place since we didn't jump in large gaps prior. I could understand day traders selling after great daily gains but that hasn't happened. Why would longs sell today instead of a day ago when the price was slightly higher. Am i reading this wrong?
What am i missing here?
Copper strike underway
Price of copper goes down
NXG produces gold at one of the lowest if not lowest costs per ounce and sp creeps
AZK deep in debt not producing currently yet price goes up
sometimes I start to believe the MM's play games to the point of almost being criminial in nature if only the SEC had balls instead of being wined and dined by the big boys
It is going to be hard keeping my mind on my golf game Thurs and then playing poker at foxwoods in the evening with all the news coming out that day.
Don't know if anyone posted this but these guys could be on strike for awhile if they turned down 13% plus they want 30,000 bonus.
Escondida miners reject BHP Billiton pay offer
Workers at the world's largest copper mine in Chile have rejected an offer from owner BHP Billiton and have said they anticipate a walk-out that could last a month.
The workers late Monday (local time) refused to vote on a proposal from the Anglo-Australian resources giant put forward on Friday, leaving the mine's production at less than half of normal.
In a meeting of nearly 2,000 workers, the miners decided the 3 per cent wage hike plus $US16,000 per-worker bonus the company offered was not enough, union spokesman Pedro Marin said.
They are seeking a 13 per cent pay increase and a $US30,000 payment per miner, he said.
The strike began Monday (local time), jeopardising 8 per cent of global copper production and spurring prices to a three-week high.
The mine's main customers are Japan, Germany, Canada, China, Sweden, Brazil, South Korea and France.
Miners say their demands reflect a tripling in global copper prices since the previous collective bargaining agreement reached three years ago.
Escondida produces on average 125,000 tonnes of copper per year, nearly 20 per cent of total production in Chile, the world's largest copper producer.
Really expected copper to fly yesterday with the strike and today also, seems they are holding it down or expect the strike to settle rather quickly in Chile. If the strike lasts more then 2 weeks copper may be worth more then gold, LOL
Week ahead outlook
Lets see Chile copper miners go on strike
Iran tells us they will go ahead with producing enriched uranium
Middle east fighting escalates over the weekend
Copper up .04 on a Sunday night
Gold up a couple $
Earnings due out on Thurs
If the PM stocks, namely NXG, don't take of this week with all this happening as a plus then there should definitely be an investigation on who or what moronic MM's are holding it back.
Oh fogot about those shots last week between North and south Korea.
Its great for EZM, TGB, NXG and any other copper miners whether copper is their primary or secondary metal as the spot price on Mon should climb. The chile mine produces roughly 8 1/2 % of the worlds copper so as far as I am concerned let them strike for 3 months or more while all along driving the price upward.
5.2 is extremely high they are definitely inflating the numbers IMO to be used in court for restitution. There is no way the hostile bid cost them that much unless it was for the all the postings they did explaining who the other buyers where that they had lined up out the door of corp. LOL These idiots at AZK have no idea how to run a mining company all they are doing is getting fat on their shareholders money. There was no other suitor and if I had own shares of that company when that statement was made then I would have insisted they explain who it was.
BHP Billiton's Chilean Union Rejects Improved Offer (Update3)
Aug. 4 (Bloomberg) -- A union at BHP Billiton Plc, the world's largest mining company, rejected a sweetened wage offer, saying workers at Chilean copper mine Escondida will strike on Aug. 7.
Management at the mine today improved its salary offer for the second time this week by offering to increase bonuses by 400,000 pesos ($737) to 8.5 million pesos per worker, and by pledging to build miners a soccer field. It left unchanged its offer to boost wages by 3 percentage points above the inflation rate.
``This offer isn't even worth voting on,'' Marin said.
Copper prices rose 4.1 percent today in New York partly on concern that the labor dispute will reduce supplies. A strike by the union, which wants a raise of 13 points above inflation, will halt production at the mine, Marin said in a telephone interview. Escondida produced 8.5 percent of the copper mined worldwide last year.
Copper for delivery in September rose 14.30 cents to $3.6325 a pound on the Comex division of the New York Mercantile Exchange. Prices have more than doubled in a year in part on demand in China, the world's biggest user. Prices have more than tripled since 2003, when the mine's union last negotiated salaries.
The union, Escondida's Workers' Union No. 1, wants a bonus of 16 million pesos per worker in addition to the wage increase, the union's president, Luis Troncoso, said prior to today's offer. The union said its 2,052 members represent about 94 percent of the mine's workers.
Management last sweetened its proposal on Aug. 2 by raising the salary increase from 1.5 percentage points above the inflation rate. The union is seeking a raise of 13 percentage points above inflation.
BHP Billiton owns 57.5 percent of Escondida, Rio Tinto Plc owns 30 percent and a group led by Mitsubishi Corp. owns 10 percent. The International Finance Corp. owns the rest.
To contact the reporter on this story:
Heather Walsh in Santiago at hlwalsh@bloomberg.net
Last Updated: August 4, 2006 17:51 EDT
BHP Billiton's Chilean Union Rejects Improved Offer (Update3)
Aug. 4 (Bloomberg) -- A union at BHP Billiton Plc, the world's largest mining company, rejected a sweetened wage offer, saying workers at Chilean copper mine Escondida will strike on Aug. 7.
Management at the mine today improved its salary offer for the second time this week by offering to increase bonuses by 400,000 pesos ($737) to 8.5 million pesos per worker, and by pledging to build miners a soccer field. It left unchanged its offer to boost wages by 3 percentage points above the inflation rate.
``This offer isn't even worth voting on,'' Marin said.
Copper prices rose 4.1 percent today in New York partly on concern that the labor dispute will reduce supplies. A strike by the union, which wants a raise of 13 points above inflation, will halt production at the mine, Marin said in a telephone interview. Escondida produced 8.5 percent of the copper mined worldwide last year.
Copper for delivery in September rose 14.30 cents to $3.6325 a pound on the Comex division of the New York Mercantile Exchange. Prices have more than doubled in a year in part on demand in China, the world's biggest user. Prices have more than tripled since 2003, when the mine's union last negotiated salaries.
The union, Escondida's Workers' Union No. 1, wants a bonus of 16 million pesos per worker in addition to the wage increase, the union's president, Luis Troncoso, said prior to today's offer. The union said its 2,052 members represent about 94 percent of the mine's workers.
Management last sweetened its proposal on Aug. 2 by raising the salary increase from 1.5 percentage points above the inflation rate. The union is seeking a raise of 13 percentage points above inflation.
BHP Billiton owns 57.5 percent of Escondida, Rio Tinto Plc owns 30 percent and a group led by Mitsubishi Corp. owns 10 percent. The International Finance Corp. owns the rest.
To contact the reporter on this story:
Heather Walsh in Santiago at hlwalsh@bloomberg.net
Last Updated: August 4, 2006 17:51 EDT
BHP Billiton's Chilean Union Rejects Improved Offer (Update3)
Aug. 4 (Bloomberg) -- A union at BHP Billiton Plc, the world's largest mining company, rejected a sweetened wage offer, saying workers at Chilean copper mine Escondida will strike on Aug. 7.
Management at the mine today improved its salary offer for the second time this week by offering to increase bonuses by 400,000 pesos ($737) to 8.5 million pesos per worker, and by pledging to build miners a soccer field. It left unchanged its offer to boost wages by 3 percentage points above the inflation rate.
``This offer isn't even worth voting on,'' Marin said.
Copper prices rose 4.1 percent today in New York partly on concern that the labor dispute will reduce supplies. A strike by the union, which wants a raise of 13 points above inflation, will halt production at the mine, Marin said in a telephone interview. Escondida produced 8.5 percent of the copper mined worldwide last year.
Copper for delivery in September rose 14.30 cents to $3.6325 a pound on the Comex division of the New York Mercantile Exchange. Prices have more than doubled in a year in part on demand in China, the world's biggest user. Prices have more than tripled since 2003, when the mine's union last negotiated salaries.
The union, Escondida's Workers' Union No. 1, wants a bonus of 16 million pesos per worker in addition to the wage increase, the union's president, Luis Troncoso, said prior to today's offer. The union said its 2,052 members represent about 94 percent of the mine's workers.
Management last sweetened its proposal on Aug. 2 by raising the salary increase from 1.5 percentage points above the inflation rate. The union is seeking a raise of 13 percentage points above inflation.
BHP Billiton owns 57.5 percent of Escondida, Rio Tinto Plc owns 30 percent and a group led by Mitsubishi Corp. owns 10 percent. The International Finance Corp. owns the rest.
To contact the reporter on this story:
Heather Walsh in Santiago at hlwalsh@bloomberg.net
Last Updated: August 4, 2006 17:51 EDT
Does anyone know the approximate time they are expected to release the strike or no strike vote in Chile?
The Escondida workers have rejected the latest offer by management. Management increased its offer from 1.5% pay increase to 3%. The union is demanding a 13% increase. There is time for one last offer and thats it. If an acceptable offer isn't made by tomorrow then the strike is on.
This was posted by firecracker070445 on the Yahoo EZM board
Both TGB and EZM running today, reasoning could be the copper strike, earnings, cu price or all three, then there is the infamous insider info passed on to F&F. Would love to see EZM get back to the 3:25 mark. Need NXG to climb away from AZK to make up for yesterday. Tough to work watching this market LOL
Aurizion report link from yahoo board
http://www.thebullandbear.com/bb-reporter/pdf/Aurizon.pdf
Wonder how much they paid for this to be published, must be hoping to calm their large holders from going over to NXG come Oct
EZ2, whats up with TGB, up big yesterday and again pre today?
Hey EZ2 the space between the 2 increased to .32, at this rate we may be able to purchase at around $2.00 1st week of Oct. LOL
Go NXG pull away from that little puppy.
EZ2 save your money for the week before Oct 19th, LOL
sorry meant to say Phelps dodge on that last post, to many brews today
Interesting article on EZM in case any of you own it also
http://www.globeinvestor.com/servlet/story/ROC.20060730.2006-07-30T053246Z_01_N30228744_RTRIDST_0_BU...
Chilian mine strike is a yes
http://www.bloomberg.com/apps/news?pid=20601086&sid=adBnARRloC_w&refer=latin_america