Union workers at Xstrata smelter in Chile to strike

SANTIAGO, Dec 27 (Reuters) - Union workers at Chile's Altonorte copper smelter plan to strike and block roads on Monday after scrapping a final wage offer from owner global miner Xstrata (XTA.L), the union said on Sunday, although the company saw little immediate impact.

A Xstrata spokeswoman in Chile told Reuters the strike would coincide with general maintenance of the metallurgical complex, which already lowered its copper anodes output to a minimum. The maintenance, which started last week and is carried out every 2-1/2 years, is expected to end on Jan. 20.

She did not say how much the smelter was currently producing, but said the company has notified clients.

The 274 union workers, which represent about 90 percent of the labor force in charge of production, plan to down tool early on Monday at the complex that produced 232,000 tonnes of copper anodes last year.

"They will not be able to produce without us," said Abdiel Sepulveda, head of Altonorte's union No. 1.

Sepulveda said Xstrata lowered the original wage and benefits offer during the 5-day government mediation that started last week.

He said workers also plan to block access roads to the complex early on Monday to pressure the company.

A prolonged strike at the metallurgical complex could delay some copper anodes shipments from top producer Chile. Mining companies could also be forced to look for other smelters to process their concentrate, which could increase costs, however, analysts say the impact on the market would be minimal.

Xstrata's Altonorte said in a statement it will continue to seek an accord with the workers.

"We delivered an offer that was in touch with the financial reality of Altonorte," smelter manager Jose Urrutia said in a release. "This was our best effort to improve salaries and benefits. The smelting of (copper) concentrate is a marginal business that has not benefited from high copper prices."

Xstrata, which shut down its Kidd copper and zinc metallurgical plant in Canada on global overcapacity in copper smelting and low treatment and refining charges, took a charge of $170 million for Altonorte. [ID:nGEE5B707Q]