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News > Latin America

Chile Mining Doubles in a Decade Under Bachelet

  • Chilean copper has been at the head of the curve due to high international prices.

    Chilean copper has been at the head of the curve due to high international prices. | Photo: Reuters

Published 19 January 2017
Opinion

Labor rights are deteriorating as companies are being investigated for collusion with the government.

Chile’s mining industry doubled in the past decade on the back of Michelle Bachelet’s government, as labor abuses continue and more mineral mining is expecting to grow.

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The decade has seen the number of workers double — and the count isn’t yet complete, according to Chilean Copper Commission numbers released Thursday. The number begins in 2006, the year Bachelet entered the presidency, and ended in 2015, the second year of her second term. The same day, Chilean chemicals and mining company Sociedad Quimica y Minera de Chile was ordered to pay US$30.5 million for bribing politically-linked foundations and hiding those payments.

While productivity has not significantly increased, reported Portal Minero, more personnel has been hired as, for instance, exploitation has moved into less accessible areas and required more hands in transportation.

The spike in hired labor is mostly accounted for by contracted workers, who saw a much higher rise in hiring, especially as the price of copper rose. Now that the price is dipping, Portal Minero reported that efficiency is a more important question.

Still, production is looking to increase, at least under the current administration. Canadian mining company LiCo Energy Metals and U.S.-based Albemarle Corporation both announced earlier this month that they will expand lithium exploitation in Chile, reported Energy Storage News, adding that Albemarle “was proud to extend its partnership with the Chilean government.”

While job creation is on the rise, working conditions are not improving. Chilean mining unions have drawn international headlines this year, with workers winning a victory on Wednesday at El Peñon, where Yamana Gold negotiated with two unions who staged a sit-in for nearly two weeks.

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