Chile's Escondida copper mine, the world's biggest, on Tuesday averted a strike after workers accepted an early wage offer from owner BHP Billiton in a move that could ease short-term supply concerns. The early agreement at Escondida is likely to set high expectations for upcoming labor negotiations in Chile, the world's top copper producer, especially for state-owned miner Coldelco, which will rework contracts with workers. Copper mining accounts for one-third of Chile's foreign trade and is one of the biggest sources of income for the government. “It was a difficult and hard negotiations that turned into victory for the workers,” Escondida union chief Zaiso Mercado told Reuters shortly after recounting the votes. “The offer responds to our needs.” The deal was a victory for BHP even though another of its Chilean mines went on strike, and it also reflects the giant mining company's confidence in the recovering copper market. The smaller Spence mine halted extraction after a strike earlier on Tuesday. Higher copper prics have allowed mine workers around the world to demand a bigger share of profits, creating worries about supply disruptions this year. BHP started early talks with Escondida union officials to avoid a stoppage similar to the 25-day strike in 2006 that limited production and lifted global copper prices.
