Workers Vote to Strike at South32’s Cerro Matoso Nickel Mine – by Andrew Willis and David Stringer(Bloomberg News – May 29, 2016)

http://www.bloomberg.com/

Workers at South32 Ltd.’s Cerro Matoso, the world’s second-biggest ferro-nickel mine, voted to take strike action amid a dispute over negotiations on a wage agreement.

Members of the Sintracerromatoso union approved the move at the operation in northern Colombia, the union’s negotiator Eder Blanco confirmed in a text message. A strike must begin before June 14, and a deal to avert the action could be reached before then.

A previous strike at Cerro Matoso in April 2015 caused output to fall, leading to an increase in global prices. The nickel complex is among the world’s largest, with output of 27,200 metric tons in the nine months to March 31.

Perth-based South32 will continue to seek a resolution of the dispute, spokesman Tony Johnson said by phone. South32 fell 0.6 percent to A$1.60 by 11:58 a.m. in Sydney trading, trimming its advance this year to 50 percent.

Even as nickel prices rebounded 11 percent since touching a 13-year low in February, many producers continue to be loss-making. A

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