Strike ends at Yamana Gold's El Peñón mine, union says

(Adds comments from union, company)

By Anthony Esposito

SANTIAGO, Jan 17 (Reuters) - Striking workers at Yamana Gold Inc's El Peñón mine in Chile have reached a wage agreement with the Canadian miner, allowing for the mine to reopen on Wednesday, a union leader said on Tuesday.

"We just ended the strike today after signing a contract for four years and we will start working again tomorrow morning," Eduardo Puelles, president of Union No. 2 told Reuters.

Operation at El Peñón, Yamana's second biggest gold mine by output, were suspended on Jan. 7 after workers affiliated with the union staged a sit-in at the employee camp and blocked access roads.

The mine produced 164,445 ounces of gold in the first nine months of 2016, equal to about 17 percent of the company's gold output.

"Operations partially resumed last Friday after these workers relinquished the camp in order to allow for conclusion of negotiations," the company said in a statement.

It added that the interruption in operations has not had a "significant impact" on mine and consolidated production and that it expects to recover production from its other operations in the short term and from El Peñón throughout the year.

Yamana said it concluded negotiations leading to collective bargaining agreements for terms of 40 and 48 months with two unions representing underground workers.

The second union at El Peñón had told Reuters earlier on Tuesday that it was still in wage talks with the company.

(Reporting by Anthony Esposito; Editing by Chris Reese and James Dalgleish)