Miners at Chile's Collahuasi go on strike

SANTIAGO, July 9 (Reuters) Workers at one of Chile's largest copper mines, privately-owned Collahuasi, started an indefinite strike on Monday after failing to reach an agreement with management over pay and conditions.

The strike began at 08:00 a.m. local time (1700 hrs IST) at the northern Chilean mine, which produces 440,000 tonnes of copper per year or about 8 per cent of Chile's total.

Trade Union President Hernan Farias told Reuters he was among 180 workers outside the mine. They were waiting for a further 180 miners to come off the night shift to join them.

He said workers and supporters planned to march through the nearby city of Iquique later on Monday to highlight their cause, although he added the union was still ready to negotiate.

''We're open to talks, and if they feel the same way then we're ready,'' he said.

Collahuasi is majority-owned by global miners Xstrata Plc and Anglo American , which each have a 44 percent stake. The remaining 12 per cent is owned by a group of Japanese companies headed by Mitsui&Co. Ltd..

Union leaders and managers spent last week in government-mediated talks over pay and conditions.

The Collahuasi management company twice raised its initial pay offer from 3.2 per cent to 3.5 per cent and finally 4.0 per cent, but workers demanded an 8 per cent raise.

They also want improved health and education benefits, a housing stipend and a retroactive share of soaring company profits from 2005 and 2006, when copper prices were at record levels.

The union represents 698 workers at the mine, the vast majority of whom voted in favor of the strike.

Chile is by far the world's largest producer of copper, accounting for around a third of global supply.

REUTERS SV BST1833