SANTIAGO, Jan 24 (Reuters) - The union at Capstone

Copper's ( CSCCF ) Mantoverde copper and gold mine in northern

Chile on Saturday denied a company claim that it was still

occupying a desalination plant at the facility, saying the

allegation was ‌an excuse to avoid talks.

Workers have been on strike at the mine since ​January 2

after talks over new labour contracts broke down.

The union ‍representing 645 workers said in a statement that

government ⁠officials had called ⁠a mediation meeting on Friday,

but the company declined to attend unless union members ‌first

halted what it described as forceful ​actions.

The union said a small group of its members had obstructed

the entry of company personnel and on ⁠Thursday took over the

desalination plant ‍that provides ​water for the mine, but that

they had since stopped those actions.

All staff who normally work at the plant could ‍access the

facility, the union added.

It also said in its statement that it "rejected the

company's false account that a 'mob' had entered the plant,

causing significant damage that left it inoperable".

"The company's management is harming the interests of its

own owners by failing to restart ​plant ‍operations, all in order

to sustain a narrative that criminalizes the strike."

Capstone Copper ( CSCCF ) said in a statement to Reuters ​on Saturday

that it maintained its position that "the minimum conditions for

talks do not exist".

The labor dispute comes at a time when markets are highly

sensitive to any signs of tighter copper supply, with prices at

record highs amid expectations of strong future demand.

Mantoverde is 70% owned by Capstone and ​30% by Mitsubishi

Materials ( MIMTF ). The mine was forecast to produce between

29,000 and 32,000 metric tons of copper cathode in 2025.

The operation accounts for about 0.4% of global ‍copper

output.