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escondida suspends all operations ANTOFAGASTA, Chile, Aug 18 (Reuters) - Chile's Escondida, the biggest copper mine in the world, said it was suspending operations and breaking off talks as a strike by union workers entered its twelfth day.

The company said in a statement late on Thursday it was taking the measures because workers had blocked access roads to the mine for two days and had put at risk the health and security of people working there.

By 0432 GMT, the benchmark three-month copper contract on the London Metal Exchange rose $10 to $7,440 a tonne on the news, up $150, or 2 percent, from the kerb close on Thursday.



"The company wants to maintain its operational continuity and renew operations as soon as possble, as soon as the police can insure the full safety of people who work in the company," Escondida said.

The mine, which produces 8 percent of the world's copper, is owned by leading global miner BHP Billiton (BLT.L: Quote, Profile, Research) (BHP.AX: Quote, Profile, Research). The strike has ruffled copper prices for days as investors speculate on when it could end.

Escondida's 2,054-member union walked out on Aug. 7 demanding a substantial raise and a special $30,000 per worker bonus linked to record high copper prices.

Escondida's net profit soared to $2.9 billion in the first half of the year due to a prolonged copper price rally.

The two sides have been locked in difficult talks this week and the company has accused the union of breaking the rules of engagement by continuing demonstrations during negotiations.

The union says the company is being too inflexible and has not improved its offer, even though workers moderated their demands for a raise.