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Minister: Govt will not intervene in Escondida strike
(BNamericas.com Via Thomson Dialog NewsEdge) Chile's government will not intervene in a possible strike at copper mine Minera Escondida, controlled by Anglo-Australian group BHP Billiton(NYSE: BHP).
"It is a private issue between the employees and the company's management and it is not up to the government to intervene in any way," said Chile's mining and energy minister Karen Poniachik during an event to launch the country's "mining month."
In addition, the government will not comment on the potential effects of a strike at Escondida, the world's largest copper mine with a capacity of 1.25Mt/y.
Last week, the Escondida workers union voted in favor of a strike to begin August 7 unless an agreement can be reached with the company on collective contract negotiations.
BHP Billiton holds 57.5% of Escondida, London-based Rio Tinto (LSE: RIO) 30%, a Mitsubishi-led Japanese consortium 10% and the World Bank's International Finance Corporation (IFC) 2.5%.
GAS SUPPLY
In terms of recent gas supply cuts from Argentina, Poniachik believes they are due to the low temperatures registered in the neighboring country.
"The cuts are very similar to the ones experienced in 2004 and 2005. When the temperature goes down in Argentina, there is less gas available to send to Chile and that is what has happened," she said.
The minister ruled out the idea that the gas supply cuts could be in retaliation to a letter sent by president Michelle Bachelet to her Argentine counterpart, Nestor Kirchner, expressing annoyance at the increased cost of Argentine gas.
Chile uses the gas imported from Argentina principally for generating electricity. The Chilean mining industry is a major consumer of electric power, using 34.4% of the 48,700GWh the country generated in 2004, according to an earlier report.
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