Peru miners meet with govt on 'key day' for strike

Lima, May 3: As a nationwide mining strike went into its third day today, Peruvian miners and government officials met for intensive talks aimed at ending the walkout this week.

Some mines had been affected by the indefinite strike, which began on Monday, but workers at many of the country's top pits were reporting for duty as usual.

Southern Copper Corp one of the world's largest copper producers, said its Peru output fell to between 90 and 95 percent of normal levels after the strike started this week.

The National Federation of Metallurgic and Steel Miners called the strike to demand better job benefits, early pensions and improved conditions for contract workers.

The federation's leader, Luis Castillo, pledged to consult with member unions tomorrow about the possibility of ending the strike.

But he said the decision would hinge on the success of today's negotiations.

''This is a key day,'' Castillo told Reuters.

Metals markets were watching the strike because Peru is among the world's top two silver producers and is the No 3 copper and zinc miner as well as the No 5 gold producer.

As of today, none of Peru's major mining companies had been obliged to declare force majeure the legal protection invoked when unforeseen events hinder a company's ability to carry out normal operations.

Peruvian Prime Minister Jorge del Castillo told reporters late yesterday that three joint commissions created to quickly address the miners' demands should finish their work on either today or tomorrow.

The Labor Ministry has said less than 5 percent of the mining sector's 120,000 workers joined the strike, while Castillo has estimated the number of protesting workers at 27,000 workers.

Peru's mining federation is made up of 74 unions, representing about 22,000 workers.

Strike Ongoing

A partial strike at Southern Copper Corp.'s Toquepala and Cuajone mines and its Ilo smelter continued today, union leaders said. The two mines produced more than 325,000 tonnes of copper last year, according to government data.

Southern Copper, controlled by Grupo Mexico said it had hired contract workers to help avoid disruptions.

''The mines are producing, the issue is how we get this product to the smelter to smelt it. And if that becomes difficult, as a last resort we will sell concentrates,'' Chief Executive Oscar Gonzalez told Reuters.

Union leaders at Southern Copper said a government-mediated meeting with company representatives was scheduled for Thursday at 4 p.m. 0230 hrs IST.

Buenaventura the largest Peruvian precious metals miner, said the only unit affected by the strike was its main silver mine, Uchucchacua.

''Production has not been affected yet,'' said Carlos Galvez, Buenaventura's finance and administration manager, adding that the company's stocks could last another day or two.

Union leaders at several units of Volcan the country's No 1 zinc and silver producer, said they continued striking today. But company officials were not available to discuss the walkout's impact.

At Yanacocha, Latin America's largest gold mine, workers did not join the general strike. But the union's top official said workers could walk off the job yesterday or on Friday if the company does not respond to its wage demands.

Mining is one of Peru's main economic drivers and accounts for more than half of export earnings.

The majority of the country's mines are controlled by large multinational companies, whose profits have surged on high metals prices. Workers' demands for a greater share of those profits have also intensified.

The last nationwide strike took place three years ago, when miners stopped work for 48 hours to protest the previous government's labor policies.

Reuters
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