BHP’s plan to invest over US$12 billion in expanding its copper operations in Chile, including projects to address declining production at its Escondida and Spence mines, is being overshadowed by protests from workers. The protests are in response to allegations of labor abuses, following the tragic suicide of a maintenance operator at Minera Escondida on November 14.
The union representing workers at the Escondida mine has mobilized, claiming that the operator’s dismissal, despite being on long-term medical leave, violated Chilean labor laws. Alexis Barrera, president of the union No. 2, demanded that BHP stop its alleged abusive practices, including what the union claims is an unfair system for evaluating performance bonuses, which has disproportionately affected women on maternity leave.
BHP, which has the highest female participation among Chilean mining companies, has received praise for its efforts to improve gender inclusion in the sector. However, these worker grievances could complicate the company’s expansion plans in Chile, which include several initiatives to optimize copper production at Escondida, the world’s largest copper mine.
To address the anticipated decline in copper production due to aging ore grades and rock hardness, BHP plans to boost capacity at Escondida and Spence with projects such as a new concentrator and improvements in desalination and leaching processes. These efforts are expected to extend the life of the operations and recover copper output to 1.4 million tonnes by 2031.
Despite these investments, BHP faces the challenge of addressing worker concerns as it looks to maintain its critical role in the global copper market.
