Chile Collahuasi Extends Wage Offer Through Friday; Output Normal

Chilean copper mine Dona Ines de Collahuasi extended its improved wage and benefits offer through Friday in the hopes of enticing more strikers to walk away from the industrial action, which entered day 20 on Wednesday, a company spokeswoman said.

Over 200 of the 1,551 unionized strikers have opted for the offer, which includes a wage increase, improved benefits and a contract signing bonus of around $30,000 per worker, Collahuasi spokeswoman Bernardita Fernandez said.

According to Chilean labor laws, if 50% of strikers break away, the strike must be halted.

Output at the mine, meanwhile, remains normal as a result of a contingency plan in place since the strike began on Nov. 5, she said.

The mine has been meeting its commitments and two shipments, one bound for Europe and the other for Japan, have left port since the strike began.

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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