Empresas y finanzas

Peruvian mines hit by nationwide strike

By Dana Ford and Teresa Cespedes

LIMA (Reuters) - Workers at several big mines in Peru wenton strike Monday and joined a nationwide walkout, hoping topressure Congress to pass a bill that would give them a greatershare of profits from sky-high metals prices.

The strike, which pushed global copper prices to atwo-month high of $8,620 (4,326 pounds) per tonne, will testPresident Alan Garcia at a time he is losing sway in Congress.He has tried to persuade legislators to approve the labour law,but has so far failed.

Labourers downed tools at some big mines, but reported forwork at others in Peru, the world's leading silver producer andsecond-largest copper and zinc miner.

"Our demands are just and urgently needed, necessary forthe mining sector," said Luis Castillo, head of Peru's largestfederation of mining unions.

Mineral exports from Peru have helped fuel a six-yeareconomic boom, but mine workers say they are not getting a fairshare of the boom.

President Alan Garcia is facing demands to spread thewealth to workers and the poor, or risk losing support for hisfree-market policies at a time when left-wing parties areeyeing elections in 2011.

MINES SLOWED

Workers were on strike at the Ilo smelter and Cuajone mineof Southern Copper, one of the world's largest copperproducers, union leader Arnaldo Oviedo said. But companyofficer Alberto Giles said production was barely affected andtemporary workers were being used.

Labourers also walked out at Antamina, Peru's biggestcopper-zinc pit, owned by BHP Billiton and Xstrata.

"All operations are stopped at Antamina," union leaderFrancisco Marino told Reuters.

Miners struck the Pierina mine of Canada's Barrick Gold, aunion leaders said, though a company official said the mine wasoperating normally. Both said work at Barrick's larger LagunasNorte mine, which relies on temporary workers, was notaffected.

Workers also failed to show up for work at the silver-zincmine of Volcan's Andaychagua, and unions at other Volcan minescould join the walkout later this week.

Buenaventura said the strike was underway at Uchucchacua,one of Peru's largest silver mines, but that production was notyet impacted. It said work continued normally at its othermines.

"Uchucchacua is affected by the strike," Buenaventura'sfinance chief Carlos Galvez told Reuters.

The union at Freeport-McMoran's Cerro Verde mine saidworkers would likely decide on Wednesday to go on strike aftera walkout earlier this month. A union leader at Doe Run Perusaid workers could vote to go on strike this week.

Shougang Hierro Peru said it was partially hit by thestrike, though a planned walkout had yet to begin at tinproducer Minsur.

CONGRESS, DEMANDS

The Federation of Peruvian Mining Workers wants Congress toapprove a law to eliminate caps on profit sharing so workerscan benefit more from record-high metals prices.

Two similar nationwide strikes in Peru since May 2007reduced output and boosted international metals prices, alongwith recent walkouts in Mexico and Chile.

The federation delayed the start of its strike twice thisyear to give Congress the chance to discuss the profit-sharingbill and to give unions more time to organize the protest.

Miners are also asking the government to change rules forearly retirement, give workers the right to enroll in state-runpension funds, and reduce the workday to eight hours.

(Additional reporting by Terry Wade and Marco Aquino;editing by John Picinich)

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