Contract workers at Chile's state copper company agreed to end a 20-day strike Monday that had idled production at three of its five mines, causing more than US$100 million (euro65 million) in losses.Union leader Cristian Cuevas said contract workers had accepted a one-time bonus of US$1,080 (euro710) from the government and planned to return to work on Tuesday. "The important thing is that the conflict has been solved, and I hope it won't happen again," Chilean Interior Minister Edmundo Perez said.

Copper prices surged to a record on Monday before the deal was announced, as the work stoppage fueled global supply concerns. Chile is the world's largest copper producer.

Subcontract workers went on strike April 16, alleging that Codelco, the nation's largest miner, had reneged on an agreement that ended a month-long strike last year. The company has denied that claim.



The strike halted work at three of Codelco's five mines, freezing 28 percent of its total output and 3 percent of global production. As of April 29, it had caused US$100 million (euro65 million) in losses, slowing production by 21,000 tons (19,000 metric tons), Codelco president Juan Pablo Arellano said.

The company produced 2 million tons (1.8 million metric tons) of copper in 2007 — more than 40 percent of Chile's total output.

Copper has gained more than 23 percent this year, as the weak dollar and rising inflation drives demand for metals, even as work stoppages in Chile and Mexico raise supply concerns.

Copper futures futures for July delivery climbed to a record $4.2605 a pound on the New York Mercantile Exchange Monday, before pulling back to settle at $3.9475, up 3.3 percent, or 12.7 cents, for the day.

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