PERTH (miningweekly.com) – Diversified miner BHP has established a $25-million fund to aid contractors in Chile after the miner was forced to progressively reduce the number of contractors at its operations amid the Covid-19 pandemic.

The miner has limited the number of employees in its operations from 7 310 to 4 910 and contract workers in its operations from 21 911 to 11 289.

The company told shareholders that it has made the decision to voluntarily undertake a significant part of the contractor companies’ cost to maintain the remuneration of their demobilized workers and their respective jobs.

For smaller and medium-sized companies, with a more fragile financial situation and whose local or regional workforce is important, BHP will continue to voluntarily pay 70% or 90% of the fixed remuneration and social security contributions associated with the scope of the works contained in the contracts, until June 30, to the extent that operational continuity in the site or respective area is maintained.

This contribution could amount to $25-million, which includes the $8-million of the initial aid implemented between March 23 and April 13.

“These measures constitute a powerful tool to contribute to the wellbeing of our economy and local and regional communities. Our objective is to protect people's health and maintain operational continuity, because we have a responsibility to the country where we operate, to the Antofagasta and Tarapacá regions and to the workers and their families," stated BHP’s VP of supply for Minerals Americas, Pedro Correa.

BHP's effort to help its contractors is aligned with its Social Value strategy and joins the “Vamos Juntos” plan, which, together with the Faculty of Medicine of Universidad Católica, will increase the virus detection capacity and strengthen the Family Health Centers of the South-East Area of the Metropolitan Region, and of the Antofagasta and Tarapacá regions. “Vamos Juntos” also considers BHP's help to the communities where it operates and to vulnerable risk groups in the Antofagasta and Tarapacá regions in matters of basic supplies, hygiene and sanitizing. This health aid plan contemplates an investment of $8-million.

BHP in April this year established a A$50-million Vital Resources Fund to help support regional communities in Australia in its areas of operation, and has vowed to employ an additional 1 500 staff in that country to support its existing staff.