UPDATE:Chile Collahuasi Talks 'Advancing';Strike Enters Day 27

Negotiations between the union and management at Chilean copper mine Dona Ines de Collahuasi are "advancing", while the strike at the mine enters its 27th day Wednesday, a company spokeswoman said.

Despite the strike, the mine has met its commitments and sent out several copper shipments to clients in Asia and Europe.

Union leaders from the sole union at the mine and company executives met Tuesday morning and then held a second meeting that ran late into the evening, Collahuasi spokeswoman Bernardita Fernandez said.

On Wednesday, negotiations resumed for a morning session. Union representatives and management will return to the negotiating table later Wednesday afternoon.

"The dialogue between the two sides continues," Fernandez said.

She noted that while the mine operated during the strike as a result of a contingency plan, it is now in the process of ramping back up to normal production levels.

Over 220 workers broke away from the strike last week and returned to work at the same time that the company hired about 100 replacement workers.

Analysts speculate that Collahuasi likely had copper-containing ore on site stockpiled ahead of the strike to continue processing operations while unionized workers downed their tools.

At 27 days and counting, the industrial action at Collahuasi is turning into one of the longest strikes in Chilean mining history.

Collahuasi is owned by diversified mining companies Xstrata PLC (XTA.LN) and Anglo American PLC (AAUKY, AAL.LN). Each one holds a 44% stake in the mine. A consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the remaining 12%.

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