A strike at Chilean copper mine Dona Ines de Collahuasi, one of the globe's largest red metal mines, seemed to be edging closer as unionized workers cast votes on the company's final wage offer, a labor leader said late Wednesday.

Collahuasi was forced to shut down earlier this year for several days after protesting contract workers blockaded the access road to the mining compound, resulting in a loss of 11,300 tons of copper contained in concentrates. Also, workers at Collahuasi went on strike for several days in 2007 as the last wage negotiations broke down.

"Some 1,050 workers have already cast a vote and of those 255 have been tallied. An overwhelming 254 have voted against the wage deal and in favor of striking, while only one voted in favor of the contract offer," union spokesman Juan Antonio Barraza told Dow Jones.

The 1,551-member union will finalize voting on the wage deal, which includes bonuses worth 8.9 million Chilean pesos ($18,305), late Wednesday night, Barraza added.

"In contract negotiations with unionized workers, voting to go on strike is a legitimate tool. However, both sides have the right to ask for government mediation if that happens, to try to come to an agreement before an actual strike occurs," said company spokeswoman Bernardita Fernandez.

If either workers or the company ask for government mediation, talks are extended for another five days. Then, if both sides still haven't reached an agreement, government mediation and talks can be prolonged an additional five days if both company representatives and union leaders request it.

When asked about a possible strike at Collahuasi, Mining Minister Laurence Golborne said, "we're used to these types of situations...it's part of the normal development of the relationship between employees and management and regulated by local labor laws."

Copper, which has been trading near 27-month highs, will likely be sensitive to any news on a strike that would point to a tighter market.

The mine is owned by diversified mining companies Xstrata PLC (XTA.LN) and Anglo American PLC (AAUKY, AAL.LN), each with a 44% stake. A consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the remaining 12%.

Collahuasi produces about 500,000 metric tons of copper a year, or about 10% of Chile's annual output. Chile is the world's leading copper producer, accounting for about 35% of global output.

-By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929; anthony.esposito@dowjones.com
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