RPT-UPDATE 2-BHP, strikers in Chile agree to resume talks

* Strikers at Spence agree to resume wage talks

* Talks may tame threats of wider disruptions

* Unclear if sides can reach deal to lift 39-day strike (Repeats to fix two story links in body of story. Recasts, adds Spence union leader comments and details)

By Alonso Soto

SANTIAGO, Nov 20 (Reuters) - Strikers at the Spence copper mine agreed to resume wage talks with owner BHP Billiton on Friday in an effort to end a 39-day work stoppage that threatened to spread to the miner's other operations in Chile.

A leading Chilean mine union earlier on Friday threatened to halt output at mines owned by BHP Billiton in solidarity with strikers at its Spence deposit, fanning fears of supply disruptions in the world's top copper producer.

"We are going to sit down with the company in the coming hours," said Daniel Ibacache, a board member of Spence's worker union.

Spence union workers walked off the job on Oct. 13 over a wage disagreement, marking one of the longest stoppages at a private mine in the South American country.

The threats of wide protests by the mining federation, which comprises around 5,000 workers at main deposits, including workers at BHP (BHP.AX) (BLT.L) copper mines like Escondida, the world's biggest, could help sustain copper prices that have more than doubled so far this year.

Other top mines in Chile are seeking to avert industrial action by reaching collective wage agreements with workers. [ID:nN20237206]

BHP either has stakes in or owns three mines in Chile, including its Spence deposit, which together produced about 1.5 million tonnes of copper in 2008, or about 10 percent of world output, according to Chilean government data. [ID:nN20237127]

Federation board member Miguel Barraza had said workers at other BHP mines could halt or slow output, or cut supplies. He added that the federation's board was planning to meet on Friday to decide its next step.

A federation official told Reuters they were keeping a close eye on negotiations before deciding on any protest action.

SUPPLY FEARS

The threats of labor action against BHP continued to support copper prices on Friday, traders said.

Copper prices slowed their fall on Friday on expectations of stronger demand next year. Benchmark copper MCU3 was untraded but last bid at around $6,845 per tonne, down from $6,790 at the close on Thursday. [ID:nLK604076]

Labor action against BHP could undermine the company's success in convincing workers at Escondida and Cerro Colorado mines in Chile to accept new contracts and avert strikes.

Mining sources said the strike at Spence has dragged on for so long in part due to the union leaders' lack of experience in collective negotiations and BHP's tough stance on their demands.

BHP shut down the Spence mine this week after workers invaded installations, accusing the miners of sabotage and of seizing pumps that circulate sulfuric acid used for the leaching of the ore.

BHP has said the mine has lost 500 tonnes of copper per day since the strike started in October, which amounts to about 19,500 tonnes in total losses.

A BHP spokesman in Santiago said he hopes for a resolution to the stalemate to lift the strike soon.

Miners at Spence said earlier they were open to negotiations and denied company charges of sabotage, saying the takeover was nonviolent. (Reporting by Alonso Soto; Editing by Simon Gardner and Jim Marshall)