Reuters reported that unionized workers at Chile's Escondida have voted in favor of early labor talks with the mine's controller, global miner BHP Billiton.

A union leader said that Escondida's union stunned the copper market last year by staging a two week strike which sent the mine's output tumbling and raised the specter of an increase in labor action. Holding early talks this year suggests improved chances that the firm and workers can clinch a deal.

Mr Marcelo Tapia union leader at Escondida said that "We were invited by the company to hold negotiations and the workers accepted.”

Escondida's labor contract is set to expire next June. BHP and Rio Tinto which owns 30% of the mine have approved plans for USD 4.5 billion expansion of Escondida to boost output.

Escondida's Q3 output surged 72.4% from a year earlier to 253,800 tonnes boosted by better ore grades and a low base of comparison from the year ago quarter. Output in the January to September period was 787,000 tonnes up 31.6% from a year earlier.

The mining industry in Chile is also bracing for collective negotiations at state copper producer Codelco's massive Chuquicamata mine. Most unionized workers at the century old deposit have voted to start early contract negotiations.