Chile Collahuasi Management Sweetens Offer To Avert Strike

Management at Chilean copper mine Dona Ines de Collahuasi sweetened its wage and benefits offer in the hopes of averting a strike, a company spokeswoman said Wednesday.

The company and the sole union at the mine are in the middle of a five-day government mediation period and a strike could begin at the start of the first shift Friday if talks fall through.

"We are talking with the union with the best of intentions," a Collahuasi spokeswoman said.

The company sweetened the end-of-conflict bonuses Chilean miners often obtain after contract negotiations and increased monthly wages for a 40-month contracts.

Union leaders weren't immediately available for comment.

Mining-sector strikes in Chile are usually short-lived but nonetheless boost copper prices on world markets as they raise concerns over copper supply.

Local labor laws allow for a second, five-day mediation period if both sides request it. Union leaders, however, recently said they aren't likely to request another mediation period.

The mine, one of the biggest in Chile, 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%.

The mine 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 Carolina Pica, Dow Jones Newswires; 56-2-715-8919; carolina.pica@dowjones.com

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