El Salvador mine
Encyclopedia
El Salvador mine is a combined open pit
and underground copper
mine
in Chile
, it is owned by the state owned
copper mining company Codelco
. The mine is located in the company town
of El Salvador
.
The El Salvador mine was originally owned by Anaconda Copper
and opened in 1959, in the 1970s with the nationalization of the copper industry in Chile
, control of the mine was turned over to the newly formed, state owned
copper mining company Codelco
.
Codelco had planned to close the El Salvador mine in 2011, but extended the mine life by an additional 15–20 years. El Salvador operates as Codelco's smallest mine with the highest cash costs.
. Production at the mine began in 1959, and was intended to replace production of the company's Potrerillos mine, which would be closing due to a decline in ore quality. Production from the El Salvador would increase Chile's total output of copper about 450,000 tons of copper per year, rather than a decrease in production, out of satisfaction and relief, the company renamed the mine El Salvador, Spanish
The Savior. When President
Salvador Allende
nationalized the Chilean copper mining industry
and Codelco was formed in 1971, the El Salvador mine, and other mines owned by Anaconda, and mines Kennecott Mining Co. became property of Codelco. After the military coup led by Augusto Pinochet
in 1973, the mines were not returned to the companies.
In 1989 the mines production rate of 120000 tonnes (132,277.4 ST) of refined copper accounted for 1.7% of the world's copper supply (seven million tons produced globally). The El Salvador mine is Codelco's smallest operation and has the highest cash costs per pound of copper, $0.72 in 2005, (an increase from $0.66 in 2004), compared to a company wide $0.44 per pound. El Salvador produced 14000 tonnes (15,432.4 ST) of copper in the first quarter of 2005 of Codelco's total production of 414000 tonnes (456,356.9 ST).
In 2005 Codelco had planned to shut down the El Salvador mine in 2011 because of declining ore
grades and increased costs, but extended the project life by an additional 15–20 years.
leaders arrest for calling for an end to military rule in Chile. Between the three mines at least 3,300 workers and 37 labour leaders were fired for participating in the strike.
, Canada
. There was little market reaction to the end of the strike as several other copper mines had ceased production due to bankruptcy, terrorism, weather or labour disruptions.
indicated that there would be blockades at Codelco's other mines. The contract workers were demanding the same production bonuses
, health care, housing and education benefits that company employees received. An agreement was reached between Codelco and the union on 27 July 2007. Disruptions at the El Salvodor mine and other Codelco properties, coupled with production disruptions in Canada caused an 22% increase in the price of copper in 2007.
of equipment and machinery. Important electrical equipment and water supply equipment was set on fire, which endangered the distribution of electricity
and drinkable water to the mines, resulting in a delay in operations. The strike resulted in reduced production by the mine (1000 tonnes (1,102.3 ST) of copper of 8000 tonnes (8,818.5 ST) planned in the month of July).
Open-pit mining
Open-pit mining or opencast mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow....
and underground copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
mine
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
in Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, it is owned by the state owned
Government-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
copper mining company Codelco
Codelco
CODELCO is the Chilean state owned copper mining company formed in 1976 from the foreign owned copper companies that were nationalised in 1971. The headquarters are in Santiago and the seven-man board of directors is appointed by the President of the Republic...
. The mine is located in the company town
Company town
A company town is a town or city in which much or all real estate, buildings , utilities, hospitals, small businesses such as grocery stores and gas stations, and other necessities or luxuries of life within its borders are owned by a single company...
of El Salvador
El Salvador, Chile
El Salvador is a mining town in the commune of Diego de Almagro, Chañaral Province, Atacama Region, Chile. Located at an elevation of more than 2,300 meters in the foothills of the Andes and in the middle of the Atacama Desert, it has a population of approximately 7,000 inhabitants...
.
The El Salvador mine was originally owned by Anaconda Copper
Anaconda Copper
Anaconda Copper Mining Company was one of the largest trusts of the early 20th century. The Anaconda was purchased by Atlantic Richfield Company on January 12, 1977...
and opened in 1959, in the 1970s with the nationalization of the copper industry in Chile
Chilean nationalization of copper
The nationalization of the Chilean copper industry commonly described as the Chilenización del cobre or "Chileanisation of copper," was the progressive process by which the Chilean government acquired control of the major foreign-owned section of the Chilean copper mining industry. It involved the...
, control of the mine was turned over to the newly formed, state owned
Government-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
copper mining company Codelco
Codelco
CODELCO is the Chilean state owned copper mining company formed in 1976 from the foreign owned copper companies that were nationalised in 1971. The headquarters are in Santiago and the seven-man board of directors is appointed by the President of the Republic...
.
Codelco had planned to close the El Salvador mine in 2011, but extended the mine life by an additional 15–20 years. El Salvador operates as Codelco's smallest mine with the highest cash costs.
History
The El Salvador mine was developed by Anaconda CopperAnaconda Copper
Anaconda Copper Mining Company was one of the largest trusts of the early 20th century. The Anaconda was purchased by Atlantic Richfield Company on January 12, 1977...
. Production at the mine began in 1959, and was intended to replace production of the company's Potrerillos mine, which would be closing due to a decline in ore quality. Production from the El Salvador would increase Chile's total output of copper about 450,000 tons of copper per year, rather than a decrease in production, out of satisfaction and relief, the company renamed the mine El Salvador, Spanish
Spanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...
The Savior. When President
President of Chile
The President of the Republic of Chile is both the head of state and the head of government of the Republic of Chile. The President is responsible of the government and state administration...
Salvador Allende
Salvador Allende
Salvador Allende Gossens was a Chilean physician and politician who is generally considered the first democratically elected Marxist to become president of a country in Latin America....
nationalized the Chilean copper mining industry
Chilean nationalization of copper
The nationalization of the Chilean copper industry commonly described as the Chilenización del cobre or "Chileanisation of copper," was the progressive process by which the Chilean government acquired control of the major foreign-owned section of the Chilean copper mining industry. It involved the...
and Codelco was formed in 1971, the El Salvador mine, and other mines owned by Anaconda, and mines Kennecott Mining Co. became property of Codelco. After the military coup led by Augusto Pinochet
Augusto Pinochet
Augusto José Ramón Pinochet Ugarte, more commonly known as Augusto Pinochet , was a Chilean army general and dictator who assumed power in a coup d'état on 11 September 1973...
in 1973, the mines were not returned to the companies.
In 1989 the mines production rate of 120000 tonnes (132,277.4 ST) of refined copper accounted for 1.7% of the world's copper supply (seven million tons produced globally). The El Salvador mine is Codelco's smallest operation and has the highest cash costs per pound of copper, $0.72 in 2005, (an increase from $0.66 in 2004), compared to a company wide $0.44 per pound. El Salvador produced 14000 tonnes (15,432.4 ST) of copper in the first quarter of 2005 of Codelco's total production of 414000 tonnes (456,356.9 ST).
In 2005 Codelco had planned to shut down the El Salvador mine in 2011 because of declining ore
Ore
An ore is a type of rock that contains minerals with important elements including metals. The ores are extracted through mining; these are then refined to extract the valuable element....
grades and increased costs, but extended the project life by an additional 15–20 years.
Labour disputes
As of 2007 Codelco employed 17,000 direct-hire company employees and 28,000 contract employees across all their operations. There have been multiple labour disruptions at the El Salvador mine.1983
In 1983 El Teniente and two other Codelco mines closed when approximately 13,000 workers voted to strike "indefinitely" in protest of a unionTrade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
leaders arrest for calling for an end to military rule in Chile. Between the three mines at least 3,300 workers and 37 labour leaders were fired for participating in the strike.
1989
A strike occurred at the El Salvador mine in September 1989, it coincided with a strike at Highland Valley Copper in British ColumbiaBritish Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. There was little market reaction to the end of the strike as several other copper mines had ceased production due to bankruptcy, terrorism, weather or labour disruptions.
2007
In 2007 contract workers halted production at the El Salvador mine on 16 June 2007. The roads to the mine were blocked by striking contract workers and stopped company employees from reaching production areas, and union officialsTrade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
indicated that there would be blockades at Codelco's other mines. The contract workers were demanding the same production bonuses
Incentive
In economics and sociology, an incentive is any factor that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives. It is an expectation that encourages people to behave in a certain way...
, health care, housing and education benefits that company employees received. An agreement was reached between Codelco and the union on 27 July 2007. Disruptions at the El Salvodor mine and other Codelco properties, coupled with production disruptions in Canada caused an 22% increase in the price of copper in 2007.
2008
In 2008 the contractor workers at the El Salvador, and four other Codelco mines went on strike, suspending production on 16 April, demanding that Codelco fulfil agreements reached the year before regarding increases in pay and improvement of working conditions. Protests by contract workers blocked access to the mine and sever damage to the mine resulted due to loads born on columns not designed to support weight for extended periods of time, resulting in unstable conditions within the mine (as reported by an external consulting firm hired by Codelco). The mine was the victim of sabotageSabotage
Sabotage is a deliberate action aimed at weakening another entity through subversion, obstruction, disruption, or destruction. In a workplace setting, sabotage is the conscious withdrawal of efficiency generally directed at causing some change in workplace conditions. One who engages in sabotage is...
of equipment and machinery. Important electrical equipment and water supply equipment was set on fire, which endangered the distribution of electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
and drinkable water to the mines, resulting in a delay in operations. The strike resulted in reduced production by the mine (1000 tonnes (1,102.3 ST) of copper of 8000 tonnes (8,818.5 ST) planned in the month of July).