Copper Miner's Strike in Peru

[ScrapperNJ26]

* Cerro Verde is country's third-biggest copper mine

* Workers say could launch indefinite strike on Sept. 14

LIMA, Sept 7 (Reuters) - Workers at Peru's third-biggest copper mine, Cerro Verde, launched a two-day pay strike on Wednesday and threatened an indefinite walkout later this month, union leaders said.

The 1,100 workers started the strike after last-minute talks with the company broke down on Tuesday.

"The mine is officially at a standstill," the union's Secretary General William Camacho told Reuters.

Workers could also down tools indefinitely on Sept. 14 if their demands for higher salaries are not met, union leader Leoncio Amudio said on Tuesday.

Representatives from Cerro Verde were not immediately available to comment.



Cerro Verde produced 312,336 tonnes of copper in 2010. The mine is controlled by Freeport McMoran , and Buenaventura also has a stake.

Workers at mines throughout Latin America have gone on strike in recent months, demanding a greater share of mining profits in times of record high metal prices.

Shougang Hierro Peru , the country's only iron producer, declared force majeure on its deliveries last week due to an ongoing strike.

Peru is the world's No. 2 producer of copper and silver and the No. 6 gold producer. Minerals account for 60 percent of its exports.

Second Article

Base metals yesterday failed to sustain at higher levels as weak US economic data amid stronger dollar index wiped out some gains. China’s HSBC Purchasing Managers' Index for its services sector slow to a historic low in August, also pressurizes prices.

LME Copper traded below $9000 levels with other metals nickel, lead and zinc also witnessed significant selling.

Copper prices steadied after workers at the world's third largest copper mine in Indonesia threatened to go on strike indefinitely from Sept. 15 if their demands for a pay rise were not met.

According to Japan’s top producer Pan Pacific Copper Co, copper will remain in short supply for a third straight year in 2012 as China‐led demand boosts prices. Demand will likely exceed supply by 495,000 metric tons in 2011, the biggest deficit since 2004, compared with 214,000 tons last year.

Today, base metals are expected to trade under selling pressure, however thereat of strike at Indonesia’s copper mine may limit some losses in copper for long term.

Copper (Nov): S1=409, R1=414

Nickel (Sep): S1=950, R1=965

Lead (Sep): S1=111.50 R1=113

Zinc (Sep): S1=99 R1=101

Steel long (Sep): S1=29500 R1=30000

[metal gypsy]

WOOHOO!!!!! whoops I meant, wow... bummer for the workers, I hope they get their raise.....WOOHOO for us!!! copper to da moon!!!!!

[High Voltage Processing]

Viva la Union!!!!! Long live the strike!!!! Stick it to the man workers in Peru!

[gustavus]

Don't go out a buy that bottle of champaign just yet. Copper is not going to go stratospheric anytime soon.

Nickel and her alloys on the other hand is going to come up in price.

Regards
Gustavus

[High Voltage Processing]

While I agree that it will not go stratospheric soon I do believe that the market is ready for a rise. With the strike hurting supply and China about to need a larger demand simple economics will dictate that the price will rise. While I do not expect to see a $5 or $6 dollar price point soon I do expect it to rise well over $4.5 a pound. That is something to celebrate when you are dealing in 20-30 tones of it a week.