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Attempt to end Spence mine strike fails in Chile

Tue Nov 3, 2009 12:13pm EST

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SANTIAGO, Nov 3 (Reuters) - Striking workers at Chile's Spence copper mine entered the third week of a strike on Tuesday after government-mediated talks over salaries with owner BPH Billiton (BLT.L)(BHP.AX) failed.

The talks took place on Monday and Tuesday, but mediators were unable break the impasse.

"The talks fell short because the company insists on negotiating from the bottom of their last salary offer," said Andres Ramirez, president of the 560-member Spence union.

"The company is hoping to weaken the union with its position, but we are firm with the strike," Ramirez said.

Production at Spence, which last year produced 165,000 tonnes of copper cathodes, has been cut to a minimum since miners laid down their tools. The company has not hired replacement workers during the strike.

Chile is the world's largest producer of copper, and the strike has added to supply concerns in global markets.

Talks at Spence are seen as an indicator of negotiations set to begin at other mines in Chile this year and next, equivalent to one quarter of Chile's total annual copper output.

Traders are on alert for wage talks at state-owned Codelco after BHP set the bar high with a generous wage and benefits offer at its Escondida mine. [ID:nN13178452] [ID:nN08538059]

(Reporting by Antonio de la Jara; Writing by Aaron Nelsen; Editing by Lisa Shumaker)



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