London-based miner Anglo American (LSE: AAL) failed to end a strike Monday organized by employees at Venezuela's Loma de Níquel mine, a union leader told BNamericas.
"The company tried to reactivate operations by bringing in replacement workers but it didn't work. We prevented that from happening," said the general secretary of the mine's Sinbortramaníquel union, César Castillo.
The company made the move in the hopes of ending a 23-day strike, "but we made it known that we are willing to carry this on for a month or however long it takes," he said.
LOSSES
Castillo also said the company has lost 56t/d of nickel production that adds up to daily losses of US$1.8mn at current prices. Nickel closed at US$14.157/lb on the London Metal Exchange on Monday.
"After 23 days of strike, that comes to US$41mn in losses. Those are actual figures, not projections," he said.
AGREEMENT
Regarding a resolution to the strike, the official said there is no agreement in sight and Venezuela's national assembly is expected to ask the company this week why it has not consented to meet employees' financial demands.
Employees are demanding a salary increase of 450 bolívares fuertes per month (US$209) and a one-time bonus of 20,000 bolívares.
The company had offered to boost salary in stages with an additional 200 bolívares/m that it would start paying in March and another 150 bolívares/m by September for a total raise of 350 bolívares/m by year-end.
Anglo American controls 91% of the Loma de Níquel deposit located some 80km southwest of Caracas. Loma de Níquel churned out 15,700t of nickel in 2007, down from 16,600t in 2006.
