Codelco copper workers agree to halt stoppage in Chile

Workers at Codelco, the world's largest copper producer, have agreed to end a nationwide stoppage in Chile that has slowed operations, the state-owned mining firm and unions said in a joint statement June 23.

Around 50,000 employees and contractors walked out early June 22 in protest at a decision last week by Codelco's board of directors to close its Ventanas smelter because of environmental concerns.

Following talks, management and union officials have agreed to set up a joint committee to look at the future of the metallurgical complex, which also includes an electrolytic refinery that is not due to close and a project to treat scrap at the site.

"We have highlighted once again that we will strengthen Codelco's other smelters and all its refineries because this is a crucial process in our business plan," acting CEO Andre Sougarret said.

The two sides will also seek an agreement on the future of the 350 Codelco workers at the smelter and discuss the situation of the subcontractor workers and companies employed at the site.

The Ventanas smelter is currently closed after air quality standards in the heavily industrialized Bay of Quintero fell below permitted levels earlier this month. Codelco, which has denied responsibility for the emissions, plans to restart operations once ongoing maintenance work is completed and atmospheric conditions allow.

Permanent closure is dependent on lawmakers approving legislation to eliminate a requirement on Codelco to process ores and concentrates from third-party mines in central Chile.

Following the start of the protests, the Chilean government issued a decree authorizing Codelco to reinvest an average of 30% of its profits at its operations over the next four years.