UPDATE: Chile Collahuasi Mine, Union Resume Talks-Church Leader

Executives from Chilean copper mining company Dona Ines de Collahuasi and leaders representing striking union members met Monday to resume contract talks, a Catholic Church leader said.

The strike, which entered its 25th day, hasn't shut down the mine as it has been operating under a contingency plan.

"We hope that both sides can reach a collective bargaining agreement, so as to re-establish normal conditions for all those involved," Iquique Bishop Marco Ordenes said in a statement.

A person close to the negotiations, who requested anonymity, said representatives from both sides briefly met earlier Monday and that full-fledged negotiations would likely start later in the evening.

More than 200 strikers have broken away from the strike, one of the longest in recent Chilean history, and returned to work after the company sweetened its contract and signing bonus offer.

Last week, Collahuasi Chief Executive Jon Evans said 220 workers had ended their strike.

According local labor laws, once 51% of strikers break way, the strike officially ends. Collahuasi officials have said that it's highly unlikely that number--around 780--will break with strikers and return to work.

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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