Chile Collahuasi CEO: 220 Strikers Return To Work; Output Normal

As the strike at Chilean copper mine Dona Ines de Collahuasi entered its 21st day, 220 workers have broken away from the industrial action, according to the company's chief executive Jon Evans.

Despite the strike, output at the mine, one of the largest in the world, remains normal due the company's contingency plan, he said.

"We've met with all our committments; that's part of the continuity plan," he told reporters on the sidelines of a mining industry dinner late Wednesday.

In addition, some 100 workers were hired earlier this week to maintain production at the mine, Collahuasi General Counsel Juan Carlos Palma said.

"Our aim isn't to end the strike, rather, we are aiming to maintain output," Palma told reporters.

Since the strike started on Nov. 5, Collahuasi has sent out two shipments of copper, one bound for Japan and the other for Europe, and will likely send another shipment out later this month.

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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