Chile miners reject new pay offer

Striking staff have been picketing the mine, causing it to shut down

A strike at the world's largest privately-owned copper mine has entered its third week after staff rejected an improved pay and benefits offer.

Workers at the Escondida site in Chile turned down an offer of up to $32,000 (£17,000) in bonuses and a 4% pay rise over three years, late on Sunday.

Staff are currently demanding a 10% pay rise, down from their initial 13% call.

Workers say the mine, majority-owned by BHP Billiton, should pass on more of the current high global copper prices.

Strong Chinese demand

On Friday, managers at Escondida shut down all work because striking staff had blocked access roads to the mine, causing a health and security risk.

Escondida had earlier claimed that it was producing more than half its usual output during the strike.

The Escondida mine produces 8% of the world's copper.

Copper prices have hit record highs this year due to strong global demand led by China.

In addition to BHP Billiton's 57.5% stake in Escondida, its global mining rival Rio Tinto holds 30%.

BHP Billiton, an Anglo-Australian firm, is expected to post record annual profits of more than $10bn on Wednesday.