Chile Collahuasi Copper Workers Begin Strike

Unionized workers at Chilean copper mine Dona Ines de Collahuasi went on strike at the start of the first Friday shift, a union leader said.

Workers were gathering at the union's headquarters in the city of Iquique, while the buses bring the morning workers to the mine were empty, he told Dow Jones Newswires.

A company spokeswoman confirmed that the strike was underway, but that things at the Collahuasi mining compound were "quiet."

Government-mediated talks ended Thursday at a standstill, with the 1,551-strong union holding assemblies late Thursday to explain the company's offer, vote on the strike by a show of hands and go over plans for marches and rallies, the union leader said on condition of anonymity.

"The majority of the union members voted for the strike. We'll be holding noon march through the streets of Iquique today," he said.

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%.

Collahuasi is located in Chile's northernmost First Region. It's 185 kilometers southeast of the port of Iquique, at 4,400 meters above sea level high in the Andes.

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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