Escondida strike averted after tentative BHP deal

Workers at Chile's Escondida copper mine agreed to call off a strike after reaching a tentative agreement with BHP, the company said on Wednesday.

The supervisors' union at Escondida, described as the world's largest copper mine, had earlier said it would begin a strike on Wednesday because BHP's latest pay offer was insufficient. The new proposal was due to be put to a final approval vote later in the day.

The union represents about 1,000 supervisors. On Tuesday, it said BHP's previous proposal for a collective agreement failed to meet key demands, including a pay raise, a monthly production bonus and contract-signing benefits in line with industry standards.

Chile accounts for nearly a quarter of global copper output. Its production fell in August to the lowest level in 15 years because of storms and operational problems, and a prolonged disruption at Escondida could have further reduced output.