Empresas y finanzas

Peruvian mine strike enters second day

By Teresa Cespedes and Dana Ford

LIMA (Reuters) - A mining strike in Peru entered its secondday on Tuesday, affecting production at some mines, whileworkers at others reported for duty and said they were stilldeciding whether or not to join the nationwide walkout.

The strike, which will test President Alan Garcia at a timehe is losing sway in Congress, is designed to pressure Congressto pass a bill that would give workers a greater share ofprofits from sky-high metals prices. Garcia has tried topersuade Congress to approve the bill, but has so far failed.

Workers in Peru, the world's leading silver producer andsecond-largest copper and zinc miner, marched to Congress topress their demands.

"The strike continues for the second day," Luis Castillo,head of the nation's largest federation on mining unions toldReuters.

"We have marched to Congress and now, we are going to meetwith legislators so they can meet our demand," he said.

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

MINES AFFECTED

Peruvian miner Buenaventura said the strike has stoppedproduction at its Uchucchacua silver mine.

"All production at Uchucchacua is stopped," Carlos Galvez,the company's finance chief told Reuters. The company's othermines in Peru have not been affected by the strike.

Workers were also on strike at the Ilo smelter and Cuajonemine of Southern Copper, one of the world's largest copperproducers, union leader Arnaldo Oviedo has said. The companyhas said production was barely affected and temporary workerswere being used.

Miners at Peru's largest copper-zinc pit, Antamina, ownedby BHP Billiton, were also on strike. Company officials werenot immediately available to comment on whether production hadbeen cut.

Shougang Hierro Peru and the Pierina mine of Canada'sBarrick Gold were also hit by walkouts, according to unionofficials. Barrick's larger Lagunas Norte mine, which relies ontemporary workers, was not affected.

The union at Freeport-McMoran's Cerro Verde copper minesaid workers will decide later this week to go on strike aftera walkout earlier this month.

Union leaders at Doe Run Peru, Volcan and Minsur have alsosaid workers could vote to join the strike later in the week.

Workers already have gone on strike at Volcan's Andaychaguasilver-zinc mine, though its others mines have not yet joinedthe protest.

(Writing by Dana Ford; Editing by Marguerita Choy)

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