🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

RPT-UPDATE 1-Workers to strike at Colombia's Cerro Matoso nickel mine

Published 01/06/2016, 08:19 am
Updated 01/06/2016, 08:20 am
© Reuters.  RPT-UPDATE 1-Workers to strike at Colombia's Cerro Matoso nickel mine
BHPB
-
S32
-

(Repeats story from overnight, no changes to text)

BOGOTA, May 31 (Reuters) - Union workers at Colombia's Cerro Matoso mine, one of the world's largest producers of ferronickel, will begin an indefinite strike on June 14 in protest of work and pay conditions, the union president said.

A strike at Cerro Matoso, owned by Australia's South32 Ltd S32.AX , could impact global nickel prices as production stalls. Miners last year went on strike at the mine for two weeks before reaching agreement on a dispute that had forced previous owner BHP Billiton (LON:BLT) to declare force majeure.

"The union has voted to strike on June 14 because of the negative attitude of the company to resolve workers' demands," Domingo Hernandez, president of the Sintracerromatoso union, told Reuters.

"Despite the decision to strike, we maintain an open door to dialogue. A solution to avoid the strike lies with the company."

Workers have demanded a pay increase of 9.77 percent, Hernandez said.

Cerro Matoso said in a statement that the union has ignored the crisis sparked by the global drop in mineral prices and reduced output caused by a depletion of reserves.

"We insist that Cerro Matoso cannot take work commitments that exceed economic capacity or jeopardize the sustainability of the company," said mine president Ricardo Gaviria, adding that the company would be negatively impacted by a strike.

The union's demands would incur additional costs of $12 million, the statement said. Cerro Matoso reported losses of $75 million between July 2015 and March this year.

The mine, located in the northern province of Cordoba, produced 36,670 tonnes of ferronickel last year, down 11 percent from 2014.

Cerro Matoso has more than 1,200 employees, 520 of whom belong to the union.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.