Monday, November 5, 2007

Workers go on strike at mines across Peru

Workers demanding more benefits went on strike on Monday at mines across Peru, while the government said turnout was low and urged laborers to return to their jobs in the fast-growing Andean economy.

It was the second nationwide walkout since May in Peru, the world's top silver producer, third-largest producer of copper and zinc, and fifth-largest producer of gold.

Even though the strike could curb supplies, global metals prices had a soft tone on a range of economic worries.

"The strike has started today at the big companies," said Jesus del Castillo, a director at Peru's biggest federation of mining unions.

The labor federation said 16,000 of 22,000 workers it represents walked off the job. Only 6 percent of Peru's 120,000 miners joined picket lines, the government said.

Mineral exports to Asia and the United States are crucial to Peru's bustling economy and the government discouraged the protest. The mining chamber said the industry suffered little impact from the strike, which did hit some major mines.

Workers downed tools at Yanacocha, Latin America's largest gold mine, union leader Guillermo Nina said. The mine is controlled by U.S. company Newmont Mining Corp (NEM.N: Quote, Profile, Research), and the miner said production held steady.

Laborers at the two mines and smelter of Southern Copper (SPC.LM: Quote, Profile, Research) in Peru were on strike, said Roman More, a union director. Chief Executive Oscar Gonzalez said output was firm despite the strike at Southern, a major global copper producer and unit of Grupo Mexico

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