This new contract puts an end to the risk of a new strike that could have threatened global supplies of the red metal.

The Escondida Mining Union No. 1 and BHP signed a new collective agreement on Sunday, which will be valid for 36 months, the company confirmed.

In a statement, they indicated that the new contract "considers a series of benefits for workers and changes that will allow Escondida to increase productivity, including initiatives to optimize shift changes, increase equipment utilization and compliance with the 40-hour law."

"With this, the operation is preparing to implement the strategic projects of its growth plan," they added.

They also stated that "as a company, we value the fact that dialogue has prevailed as a tool to resolve differences regarding the wording of the agreements. We would also like to thank all the direct teams and contractors who continued working to maintain the operational continuity of Escondida during the days of the strike.

The agreement puts an end to the risk of a new strike that could have threatened global supplies of the red metal.

On Sunday morning, the union had sent a memo to its members warning that it could call another strike if the company did not "rectify its position" on the contract negotiations.

The powerful union at the mine went on strike on Tuesday over wage disputes and reached a preliminary agreement on Friday to end the strike.