Chile Collahuasi Copper Mine Union Likely To Strike Friday

The 1,551 unionized workers at Chilean copper mine Dona Ines de Collahuasi are likely to go on strike, the union said on its website.

The five-day government mediation period that was sought by both management and the sole union at the mine ends Thursday and a strike could begin at the start of the first shift Friday.

In a website notice to its members, the union late Wednesday said it is on "maximum alert" and has called for mandatory assistance to assemblies either in the city of Iquique or the mine site to discuss the company's final wage and benefits offer.

"The topics on the agenda are information regarding negotiations and instructions regarding the legal strike we will begin if the company persists in its obstinance," the notice said.

Union leaders couldn't be immediately reached for comment.

The mine has a contingency plan in place to ensure operational continuity, a spokeswoman said earlier this week.

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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