Strike shuts down Peru’s only iron mine

LIMA, Aug 31 (Reuters) – A strike by workers seeking higher
wages shut down Peru’s only iron mine on Wednesday, the mining
company said.
The 1,124 workers laid down their tools at 8 a.m. (9 a.m.
EDT) and are demanding better working conditions and higher
The mine is run by Shougang Hierro Peru, a unit of Chinese
Shougang Group, and had stopped exporting its products but had
not declared force majeure on deliveries.
“That’s something we will be analyzing and we hope to make
a decision during the day,” Shougang’s General Manager Raul
Vera told Reuters regarding force majeure.
Workers want their daily salaries to rise 8.5 soles ($3.11)
per day but the company is only offering a raise of 1.5 soles
“The strike is starting now… later we will march on the
company’s office,” said union leader Julio Ortiz.
Shougang Hierro Peru’s (SHP.LM: Quote) profits surged 389 percent
in the first 6 months of 2011 due to high international metals
prices. Its mine is located near the southern city of Ica.
Shougang Hierro Peru produced 6.04 million tonnes of iron
ore in 2010. It mostly ships its products, including Special
High Grade Sinter Feed Concentrate, High Grade Pellet Feed,
Blast Furnace Pellets and Direct Reduction Pellets overseas.
Peru is a top minerals producer and the world’s No. 2
copper producer. Metals account for 60 percent of its exports.


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