Chile's Collahuasi Strike Enters 12th Day; Mediation Sought

As the strike at Chilean state copper mine Collahuasi entered its 12th day Tuesday, the company said it's seeking government mediation in the hopes of reaching a new contract deal shortly.

The 1,551 unionized workers downed their tools on Nov. 5 after wage negotiations and a five-day government mediation period ended in a stalemate.

Earlier in the week, a regional government official volunteered to mediate the conflict and a Collahuasi spokeswoman said the company has asked her to mediate.

The union has yet to answer the call to mediation and union leaders didn't immediately respond to requests for comment.

The spokeswoman said production remains normal, despite the strike, as a result of the mine's contingency plan. She said a copper shipment bound for Europe left earlier this week.

"We are going to meet all the company's copper commitments for the month of November," spokeswoman Bernandita Fernandez said.

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--located 185 kilometers southeast of the port of Iquique, high in the Andes mountains at 4,400 meters above sea level--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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