Chilean copper mine Escondida, controlled and operated by BHP Billiton Ltd (BHP), offered unionized workers an early contract and benefits package to avoid a possible strike later in the year, La Tercera newspaper reported Friday, citing unnamed sources.

In 2006, unionized workers went on strike for nearly a month, bringing production to a standstill while contract talks dragged on.

BHP officials weren't immediately available to confirm the report, but a union leader familiar with to the negotiations, who asked to remain anonymous, confirmed the offer.

The newspaper reported that Escondida offered the 2,250-strong union a 5% wage increase as well as bonuses and an interest-free loan totalling almost $30,000 per worker. Current contracts expire Dec. 5.

The unionized workers will vote through the weekend on the offer, the newspaper reported.

Escondida, the world's largest copper mine, is controlled and operated by BHP, which has a 57.5% stake. Anglo-Australian mining company Rio Tinto PLC (RTP) holds 30%, with an additional 10% held by a Japanese consortium led by Mitsubishi Corp. (8058.TO) and the remaining 2.5% by International Finance Corp. (IFC.KW), the private-sector unit of the World Bank.

-By Carolina Pica, Dow Jones Newswires; 56-2-820-4244; carolina.pica@dowjones.com