Chile Collahuasi Mine's Sweetened Offer About To Expire

With the strike at Chilean copper mine Dona Ines de Collahuasi in its 19th day Tuesday, the company's sweetened offer expires at midnight, a company spokeswoman said.

Some 120 workers according to the company, or 36 according to the union, broke away from the strike and accepted the offer earlier this week.

Despite the unusually long strike--as industrial actions in Chile tend to be short-lived, Collahuasi has been meeting its commitments and has sent out two separate copper shipments during the walkout.

Production remains normal due to a contingency plan put in place before workers downed their tools, Collahuasi spokeswoman Bernardita Fernandez said.

Despite union reports Tuesday saying the Catholic church was acting a mediator in the labor conflict, Fernandez said talks hadn't resumed.

According to Chilean labor laws, if 50% of the striking workers break away, the strike ends immediately.

Mining analysts say its unlikely that the company will be able to lure the nearly 780 workers needed to end the strike by midnight.

Diversified mining companies Xstrata PLC (XTA.LN) and Anglo American PLC (AAUKY, AAL.LN) each hold a 44% stake in Collahuasi. A consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the remaining 12%.

Collahuasi, one of the world's largest copper mines, is located 185 kilometers southeast of the port of Iquique, high in the Andes mountains at 4,400 meters above sea level. 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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