UPDATE 1-BHP strikes wage deal with Chile Spence strikers

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Sun Nov 22, 2009 8:37pm EST

(Updates with BHP quote, background)

SANTIAGO Nov 22 (Reuters) - Global miner BHP Billiton (BHP.AX) (BLT.L) said on Sunday it had reached a wage deal with the union of workers who have mounted a 41-day strike at its Spence deposit in Chile, and was now waiting for miners to vote on it.

BHP said in a statement the deal included a 4 percent wage increase for union workers during the duration of the 41-month contract, as well as bonuses and benefits.

If approved by the miners in a vote to be held later on Sunday, the deal would head off the threat of wider disruptions at other BHP deposits, which have fanned fears of supply disruptions in the world's top copper producer.

"After two days of renewed negotiations, the company and union reached a deal, which must be ratified in a vote by workers," BHP said.

"Once the deal has been approved by the workers, operations will resume at the next corresponding shift."

BHP has previously said output losses at the mine have totaled 500 tonnes of copper per day since the strike started in mid-October, which puts total losses at about 20,500 tonnes through Sunday.

Sunday's deal came after a leading Chilean mine union threatened to halt output at other mines owned by BHP Billiton in solidarity with the Spence strikers, fanning fears of supply disruptions in the world's top copper producer. (Reporting by Alonso Soto and Simon Gardner; editing by Todd Eastham) ((simon.gardner@thomsonreuters.com; +569-9818-8538; Reuters Messaging: simon.gardner.reuters.com@reuters.net))

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