Peruvian copper miners reject government intervention

Members of the trade union representing striking workers at Southern Copper’s Peruvian operations have rejected a plan under which the Peruvian government would assume responsibility for drawing up a new wage agreement.

Southern Copper made its final offer of an 11.5% last week and has now turned to the government to solve the deadlock.

Apparently, workers are fearful that Peru’s Labor Ministry would favor Southern Copper and its parent company, Grupo Mexico, when setting the new rate.

The company’s Cuajone and Toquepala mines, which produce a combined 370,000 tonnes of copper annually, are both affected by the strike.

Industrial action is also being taken at its Ilo smelter, which processes 350,000 tonnes of copper each year.

Southern Copper’s parent company, Grupo Mexico, has also been hit by strike action, at its Cananea copper mine.

It is estimated that the group is losing around 50% of its Mexican copper production at a cost of up to $2.8 million per day.

Southern Copper is the world’s fifth largest copper producer and analysts are concerned about the combined effects of the industrial action within it and Grupo Mexico, particularly as demand for the metal is expected to increase in the fourth quarter of this year.