UPDATE:Chile Collahuasi: Mediated Talks Over; Strike Starts Friday

Government-mediated talks at Chilean copper mine Dona Ines de Collahuasi ended Thursday at a standstill, a company spokeswoman said.

A strike of the 1,551 unionized workers at the company will start early Friday morning as the union is on "maximum alert," according to its website.

"The company is still open and will continue to be open to any sort of dialogue," the Collahuasi spokeswoman said.

The union, which represents 90% of the mine's union-eligible workers, told its members through its website that they shouldn't show up for work Friday morning.

"As the company insisted on its intransigent policy and no agreement was reached, the legal strike will begin at the first morning shift tomorrow Nov. 5," the union said.

Union leaders, meanwhile, didn't answer repeated calls for comment.

The strike instructions detailed on the website call for "energy and time to meet the union's needs and for an [alcohol] prohibition that goes into effect at midnight tonight."

Collahuasi, one of the largest copper mines in the world, has a contingency plan in place to ensure production during the strike.

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%.

It 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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