Strikers at Chile Spence mine to resume wage talks

SANTIAGO - Workers at Chile's Spence copper mine plan to resume wage talks with owner BHP Billiton to solve a nine-day strike that has hurt output and fanned worries about copper supplies, the union said on Wednesday. The strike is hurting output at BHP's mine, which produced close to 165 000 tonnes of copper last year, and is also seen as an indicator of upcoming labor talks at other mines in the world's top copper producer, Chile. Spence union leader Andres Ramirez said a government mediator convinced both parties to hold talks on Thursday. He had previously threatened a long stoppage to pressure the company to improve wages and benefits. "If the company really has the will, the conflict could be resolved in three days," said Ramirez, who represents 560 union workers at the mine. A BHP Billiton spokesman in Chile was not immediately available for comment on the negotiations. The output of copper cathodes at Spence is lower than usual, but BHP would not say by how much. Copper prices surged more than 3 percent to 13-month highs on Wednesday on a weak dollar and supply worries after BHP declared force majeure at the world's No 4 copper mine. Copper futures for December delivery rose 3,6 percent to $3,0360 a lb on the New York Mercantile Exchange's COMEX division. Investors are monitoring upcoming contract talks at mines of Chilean state miner Codelco, after BHP offered workers at its Escondida mine, the world's biggest, a contract that experts say could set the bar too high for others. Executives at Codelco, the world's biggest copper miner, cautioned workers to be prudent with demands in contract talks scheduled for later this year. An upswing in the price of metals such as copper has raised the specter of labor unrest in mining powerhouses Peru and Chile, which could add to supply fears and raise the price of minerals. Union workers at Codelco's Andina copper mine told Reuters they plan to send the company their wage proposal later on Wednesday and start negotiations after they rejected an early contract offer.