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The workers' union at Chilean copper mine Escondida, the world's largest copper mine, has denied local media reports that they are planning to strike ahead of upcoming labor talks.

"At this moment we are optimistic about the negotiations process, and do not see any potential problems," Zeiso Mercado, president of Escondida's Union No. 1, told Dow Jones.

Talks are scheduled to start in October to renew contracts which expire in December, and workers hope to benefit from rising international copper prices, which recently peaked at 11-month highs.

Mercado denied earlier reports that a strike is inevitable, saying strike action would only be a "last resort" if there were some sort of conflict.

Mercado said the negotiations will depend on the companies, but noted that the copper price is recovering strongly and that mining companies are posting profits despite the impact of the global financial crisis.

Earlier this week, copper prices hit an 11-month high of $2.91 a pound on the London Metals Exchange, according to Chile's state copper commission Cochilco's market data.

This is still lower than the high of US$4 a pound reached in early 2008, but nearly a 100% increase in 2009 to date.

Escondida is controlled and operated by diversified global miner BHP Billiton Ltd. (BHP), which has a 57.5% stake. Anglo-Australian mining company Rio Tinto PLC (RTP) holds 30% of Escondida, with an additional 10% held by a Japanese consortium led by Mitsubishi Corp. (8058.TO) and the remaining 2.5% by International Finance Corp. (IFC.KW), the private-sector unit of the World Bank.

In 2006, the Escondida Union No. 1 walked off the job for almost a month, bringing production to a standstill while labor talks dragged on.

BHP Billiton officials declined to comment when contacted by Dow Jones.

-By Risa Grais-Targow, Dow Jones Newswires; 56-2-820-4244; Chile@dowjones.com