UPDATE 1-Shougang Hierro Peru declares force majeure as strike halts iron output
LIMA, Sept 2 (Reuters) - Iron miner Shougang Hierro Peru , a unit of China's Shougang Group, declared force majeure on its shipments because of an ongoing strike that has completely halted output, the company said on Monday.
Shougang, Peru's only iron ore miner, produced 6.8 million tonnes last year, according to the government.
The move to exempt the company from its contractual obligations comes on the 19th day of an ongoing workers' strike in Peru's southern Ica region.
"We are without activity," the company's country manager Raul Vera told Reuters on Monday. "There is no production at the mine due to the work stoppage."
Both the company and the union that organized the strike told Reuters that the government will likely resolve the dispute by setting mandatory wage hikes this week. Peru's labour ministry has considered the strike legal.
"The regional office of the labour ministry in Ica...already has the technical and economic information needed and should produce a resolution in coming days," said Vera.
Workers are asking for 15 soles ($5.34) more on top of daily basic wages and the company so far has responded with an offer of 2.8 soles extra per day, union leader Julio Ortiz told Reuters.
Last year, Shougang workers went on strike for three weeks before the labour ministry ordered wage hikes.
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