Strike At Chile's Collahuasi Mine Enters Day 6; Deliveries Met

The labor strike at Chilean copper mine Dona Ines de Collahuasi entered its sixth day Wednesday, but the mine is meeting all its contracted deliveries, a company spokeswoman said.

The union, joined by miners and labor leaders from other companies, will hold a march through the streets of Iquique later in the day, so neither side foresees any new negotiations starting Wednesday.

The 1,551 unionized workers at the mine represented by the sole Collahuasi union went on strike Friday after government-mediated talks ended without an agreement.

"As a result of our contingency plan, we are meeting all our contracts," the spokeswoman said.

Strikes in the Chilean mining sector tend to be short-lived, with the exception of the 2006 walkout at BHP Billiton Ltd.'s (BHP) Escondida mine, which lasted a month. The union, however, is prepared for a long strike if the company doesn't meet its demands, a union leader said.

Workers want increased benefits and bonuses, and a 10% wage increase as a result of higher global copper prices. The company has offered raises of 2%-3% and contract signing bonuses of around $27,000 per worker.

Collahuasi, one of the biggest copper mines in the world, 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.

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

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

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