Union, Antamina hopeful as Peru labor talks start

LIMA, July 10 (Reuters) - Labor talks at Antamina, a major copper pit in Peru, are underway and so far amicable despite a global downturn that has slammed prices for metals and forced most companies to make cuts, both sides said on Friday.

The company and the union are negotiating a new contract to replace a current three-year agreement that is set to expire July 24. If necessary, both have said they would be willing to work past the deadline to reach a deal.

Antamina is one of the world's largest copper-zinc mines.

"Obviously, the context is very different than it was three year ago," said Jose Salazar, an Antamina official.

"But this is not a reason for us to worry. Every company is in the same position," he said.

Talks at Antamina, a joint venture between BHP Billiton Ltd (BHP.AX) (BLT.L), Xstrata Copper (XTA.L), Teck Cominco Ltd (TCKb.TO) and Mitsubishi Corp (8058.T), are among the first negotiations at a major mine in Peru after the start of the economic crisis last year, and may help set the tone for contract talks at other large mines.

Peru is the world's top producer of silver, No. 2 in copper and zinc, and ranks sixth in gold.

"For us, the most important thing is to have good work conditions ... We are not asking much in terms of wage increases," said union leader Francisco Marinas.

Peru's largest mining federation called off a nationwide strike last month after Congress voted on retirement rules and said it would debate a profit-sharing bill.

Marinas said the union is pushing worker safety and health issues, as well as improvements in environmental protections.

"Our reality is very different from other, smaller mines," he said. "I don't think the company will use it (the crisis) as a reason to not give us what we are asking. (Reporting by Dana Ford; Editing by Marguerita Choy)