PERU

PERU

Mining, metals sector strike persists, negotiations begin - Peru

BNAnericas

2nd May 2007

Peruvian mining and metal workers, on strike since Monday (Apr 30), initiated on Wednesday negotiations mediated by the labor ministry as work stoppages continued, a ministry spokesperson told BNamericas.

Of the 22,000 workers belonging to Peruvian mining and metalworkers union FTMMS, only some 5,700 went on strike Monday and the ministry has not updated that number, the spokesperson said.

Peru's mining and metal sectors employ some 110,000 workers in total.

The ministry spokesperson could not specify the operations affected by slowdowns or stoppages. Despite the reduced number of strikers, the impact of the work stoppage has caused base metals prices to climb on supply concerns, Barclays Capital said in its Wednesday commodities report.

Copper closed on the London Metal Exchange Wednesday at US$3.628/lb cash, up from US$3.592/lb the day before, while zinc rose to US$1.749/lb from US$1.720/lb Tuesday and lead jumped to US$0.919/lb from US$0.905/lb. In late April, the FTMMS called on all of its affiliates to stop working indefinitely to demand better health, safety and pay benefits.

By Pablo Gaete
Business News Americas