The mining company, Freeport McMoran, says its offer of a 30 percent increase in base salaries is the best it can do for workers at its Grasberg site in Indonesia's Papua.
Thousands of workers at the mine have been striking for seven weeks as they seek substantial wage increases.
The Jakarta Post reports Freeport as saying a 30 percent increase would mean a monthly income of just over 1,200 US dollars for the lowest ranked workers and up to about 2,100 for those on the highest salaries.
The company says the workers' demand for 7 dollars and 50 cents an hour is too high.
But the paper reports the negotiations remain deadlocked with the union asking for a break this week to explore other possible options.