BHP, union extend labor talks at mammoth Chile copper mine

The announcement early on Tuesday comes amid fears of a repeat of last year`s strike at Escondida, which jolted markets and dampened economic growth in Chile as it dragged on for 44 days.

The extension follows five days of closely-watched talks over pay at the mine that have been mediated by the government of Chilean President Sebastian Pinera.

"We`ve managed to clear up the points that had stalled the negotiation. But there are still some important points to be resolved," the union said in a short statement, without giving further detail.
Anglo-Australian mining giant BHP also said in a statement that it had agreed to extend talks with the union through Tuesday.

In its last known offer more than two weeks ago, BHP offered a signing bonus of about $18 000, plus separate bonuses intended to buy out clauses in a previous contract that allowed for housing benefits and a loan program.

The total package was valued at $27 700, including a salary increase of 1.5%.

But the union had asked for a signing bonus almost double that offered by the company, and had requested a salary increase of 5 percent, leaving a wide gap between the two sides.

The union said it would have to take any potential deal on Tuesday back to its members for approval.

Escondida produced 925 400 t of copper last year.

On Monday, the union at Chile`s Caserones copper mine said it was also postponing a strike over a new labor contract in order to continue government-mediated talks with management through Thursday.