SANTIAGO (Reuters) -Global mining giant BHP has reached an agreement with a striking union at its massive Escondida copper mine in Chile, the firm said on Friday, which will see the three-day strike called off and defuse fears about a hit to global supplies of the metal.

The union, which represents about 2,400 people, had initiated a strike on Tuesday at Escondida, the world's largest copper mine, after failing to reach a deal over pay.

BHP said the two sides reached an agreement after resuming talks.

"BHP and Union No. 1 have come to an agreement for a collective contract proposal. Along with that, it was agreed to suspend the strike underway as of this Friday, Aug. 16 at 8 a.m.," BHP said.

The union was not immediately available to comment.