News: BHP UPDATE 1-Miner BHP requests state mediation with Escondida union in Chile

(Adds details and decline to comment from union)

SANTIAGO, Aug 5 (Reuters) - Australian miner BHP has requested mediation by the Chilean government with the union representing workers at its Escondida mine, the company said on Monday, a move aimed at avoiding a potential strike at the world's largest copper project.

BHP noted in a statement that the mine is operating normally and that the mediation would aim to achieve a contractual agreement for the mine's workers.

BHP owns more than half of Escondida, while Rio Tinto and JECO Corp control minority stakes.

Once the mediation is confirmed, the parties will have five working days to continue negotiations, according to the statement.

Last week, Escondida workers

rejected an offer

for a new collective bargaining agreement, according to the union.

The union has demanded that 1% of dividends to be distributed equally among workers, but declined on Monday to comment on the company's request for mediation.