BHP removes striking workers at huge Chile copper mine, output at risk

Mining giant BHP has started removing workers on strike at its Escondida copper mine in Chile, deepening tensions at the site after a powerful union rejected the company's latest invitation for talks on pay, Report informs referring to Reuters.

The strike at the world's largest copper mine was declared hours earlier after negotiations collapsed and could lead to a major hit to production.

"After a new invitation from the company to reach an agreement, Union No. 1 declined to restart talks," BHP said in a statement, referring to the labor group that represents about 2,400 people.

Escondida, which produced 1.1 million metric tons of copper last year, said the mine was continuing to operate but did not specify how much operations had been scaled down.

BHP said it began removing striking workers when it activated a contingency plan that allows for "minimum services" and for non-union members to keep working.

Mines typically have plans to reduce operations without affecting facilities or equipment.

Workers walked out as they demanded a bigger slice of copper profits, which have been buoyed by recent high prices.

The union maintains it is willing to return to negotiations, and accused BHP of violating strike terms by replacing workers who walked out, who it said were essential to basic operations.

"We demand the company immediately end this grave anti-union practice," the union said in a statement.