Shougang resumes Peru iron ore mine operations

Shougang resumes Peru iron ore mine operations

Shougang Hierro Peru SAA has restarted operations at its iron ore mine in Marcona after a five-day work stoppage by striking subcontracted workers, said Luis Castilo, general secretary of the Mining Federation on Tuesday.

Subcontracted workers continue to strike to pressure Shougang to rehire seven miners who were fired, said Mr Castillo. The action is the third strike in 12 months at the mine.

“Subcontracted workers are paid less and have no right,” Mr Castillo said in a telephone interview with Bloomberg.

He added: “Mining unions plan an indefinite general strike starting April 30 to have these workers put on the payroll.”

The job action, which began April 11, follows strikes in June and August that cost the mine, located 380 km (240 miles) southeast of the capital city of Lima, a total 274,000 t of lost iron- ore output.

The Mining Federation represents Peru`s 28,000 miners.

The mine is owned by China`s Shougang Corp and exports half of its production to China, accounting for 1.5% of the nation`s iron ore imports. Shougang faced a number of job-related strikes last year.

The company sells 53% of its ore to China and the rest to South Korea, Japan, Trinidad and Tobago, Mexico, US and Peru. Shougang Peru is owned by China`s state-run steel-maker Shougang Group.

Information from: Bloomberg

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