Wednesday, May 07, 2008; Posted: 01:41 PM
The indefinite strike may coincide with a high-level summit of European Union and Latin American leaders that Peru is hosting on May 16.
Luis Castillo, secretary-general of the National Mining Federation, told Dow Jones Newswires that up to 70,000 workers will put down tools at midnight on May 12 at some of the country's largest mining companies.
He said this could include workers at Southern Copper Corp (PCU) and fellow copper miner Copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL).
"There are general problems," Castillo said, adding that the strike could go on for at least a week.
Workers will not strike at Minera Yanacocha SRL, Latin America's largest gold mine, he added.
Castillo said the miners are demanding that the government scrap a ceiling on workers' profit shares, the instatement of a retirement law and an end to company outsourcing.
Peru is the world's largest producer of silver, and among the top five in zinc and copper. It is also a major producer of gold, and produces other minerals such as tin and molybdenum.
Earlier this week, Energy and Mines Minister Juan Valdivia said the strike was politically motivated and that lawmakers - not the mining companies - need to hear their demands.
"Above all, it's a political strike that seeks to ruin the country's image during the summit (of leaders)," said a spokesman of the National Association of Mining Petroleum and Energy, referring next week's summit in Lima.
He said none of the association's members have expressed any worry about the strike.
The mining federation called two national strikes last year to back demands that the government approve laws that would give them more benefits.
The walkouts didn't seriously affect production at the biggest mines in Peru. In some cases, the companies used replacement workers.
-By Leslie Josephs; Dow Jones Newswires; 511-221-7050; peru@dowjones.com
(END) Dow Jones Newswires
05-07-08 1341ET
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