UPDATE: Chile Collahuasi Workers To Begin Returning To Mine Late Tuesday

Following a strike that lasted 33 days, unionized workers at Chilean copper mine Dona Ines de Collahuasi will begin returning to work at the start of the evening shift Tuesday, the company said.

On Monday, workers voted in favor of the company's contract offer, ending one of the longest strikes in the Chilean mining sector.

"The agreement that was ratified with the signatures of the Union's board members provides that each worker will receive a bonus of 12 million pesos [$25,168] and an interest-free loan of 2 million pesos in addition to diverse benefits in education, housing and health, plus a base salary adjustment of 3.25%," the company said in a statement, adding that workers agreed to a 42-month contract.

Although the workers accepted the offer Monday, according to Chilean labor laws, the regional Labor Department must be receive the offer and the results of the union vote before it goes into effect.

"The first workers to return to the mine will do so when the evening shift starts at 7 PM [local time] Tuesday," said Collahuasi spokeswoman Bernardita Fernandez.

She declined to comment on how much output was lost during the 33-day strike. Despite the industrial action, the company sent out several shipments to copper clients around the world.

The mine will gradually return to capacity of around 500,000 metric tons of copper a year in coming days.

"The company is looking forward to strengthening the operational normalization plan in the best climate possible and to face together the great challenges that imply being the world's fourth copper producer," Collahuasi said.

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

It's 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.

-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919; carolina.pica@dowjones.com

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