BHP Billiton to unveil US$3bn buyback

Global mining company BHP Billiton will announce plans this week to return up to US$3 ($4.75) billion to shareholders, despite a strike over pay at its copper mine in Chile, the Sunday Telegraph newspaper said.

The Escondida mine, majority-owned by BHP Billiton and which produces 8 per cent of the world's copper, closed down completely late on Thursday after union workers walked out on August 7, cutting production in half.

Mine managers reported progress in talks on Saturday with workers, who are demanding a pay rise and bonus pay, after Chile's government stepped in on Friday to try and resolve the strike which saw violent demonstrations. The two sides agreed to continue negotiations on Sunday.

BHP has returned US$11 billion to shareholders in the past five years, and high mineral prices have boosted BHP's cash flow considerably, but the expected announcement could exacerbate the situation at the mine, the paper said. BHP Billiton could not immediately be reached for comment.

- REUTERS