UPDATE 1-Strike at Chile Spence mine persists after talks

(Recasts, updates with comment from company spokesman)

SANTIAGO, Chile, Oct 26 (Reuters) - Copper production has been reduced to "a minimum" at the Spence copper mine in Chile, owner BHP Billiton (BHP.AX)(BLT.L) said on Monday after workers completed 14 days on strike.

Spence produced 165,000 tonnes of copper last year and the labor dispute there has raised supply concerns in global metals markets.

"Today the talks are suspended," said BHP Billiton spokesman Mauro Valdes.

"Our production is reduced to a minimum and obviously we hope to resume the conversations as soon as possible," he said.

Earlier he said, "We are only harvesting cathodes during the day shift, which assures the integrity of the installations and is compatible with the number of people working at the mine and their safety," he said.

A government-appointed mediator tried to break the impasse in the negotiations last week without success. Andres Ramirez, leader of the 560-member union at Spence, told Reuters earlier on Monday the union had had no contact with the company.

Traders are on the 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.

Analysts said supply concerns exacerbated by the 14-day strike would likely support copper prices, which on Monday retreated from 13-month highs under pressure from a rallying U.S. dollar. (Reporting by Rodrigo Martinez and Louise Egan; Editing by David Gregorio)