Labor negotiations between union leaders and management of the Collahuasi copper mine in northern Chile's region I remained stalled on Monday after more than a week without talks, a union spokesperson told BNamericas.
Union rep Juan Barraza said that if the company does not present a new, formal pay offer to the 698 union members, or 97% of Collahuasi's workforce, the group will start a legal strike from the first week of July.
Collahuasi officials were not immediately available for comment.
The company has offered a 2.2% pay raise in real terms for renewal of work contracts while the unionized employees are pushing for an 8% raise, according to earlier reports.
Current contracts expire June 30, Barraza added.
Collahuasi produced 440,000t of copper in 2006. The mine is jointly controlled by London-listed Anglo American (LSE: AAL) and Xstrata (LSE: XTA), each with 44%. Japan's Mitsui controls the remaining 12%.