UPDATE 1-Chile Lomas Bayas miners to start strike Wednesday

(Updates with quote, company statement)

SANTIAGO, May 5 (Reuters) - Mine workers at Xstrata's (XTA.L) Lomas Bayas copper deposit in northern Chile will start strike action on Wednesday after wage talk mediation failed, their union said on Tuesday.

Union leader Elias Andronico, who represents some 385 workers at the deposit, told Reuters the strike would begin at 8 a.m. (1200 GMT) on Wednesday, when the first shift is supposed to start.

"The strike will start with the first shift tomorrow," Andronico said. Xstrata said on Tuesday it had made a final offer to workers to increase their pay by 4 percent above inflation instead of the 6 percent raise they are demanding.

"The company told us either we accept this offer or another offer that does not include an end-of-conflict bonus would remain on the table," he added. "This does not satisfy us."

Xstrata said it had implemented a contingency plan to minimize the impact of any eventual strike on output.

The Lomas Bayas deposit, which is located in Chile's Atacama desert, has an annual output capacity of around 75,000 tonnes of copper. (Reporting by Manuel Farias; Writing by Simon Gardner; editing by Carol Bishopric)