UPDATE 1-Peru Shougang's iron mine halted by strike

(Recasts, adds quote from company)

LIMA, July 13 (Reuters) - Workers at Shougang Hierro Peru (SHP.LM) went on strike for higher wages on Monday and a company official said work at the iron ore mine was halted.

Shougang Hierro Peru, a unit of the Shougang Group of China SGANG.UL, churned out some 5.2 million tonnes of iron ore last year and is Peru's only iron producer.

"Shougang has the capacity to raise our salaries, just with 4 percent of its profits," union leader Julio Ortiz told Reuters.

Tensions in the sector have risen as prices for most of the country's metals exports have fallen because of the global economic downturn. The national labor federation says nearly 10,000 mine workers have lost their jobs since November.

"In general, the company is being affected by the strike, because the work isn't being done," said the mine's manager, Raul Vera.

Peru, a leading global minerals exporter, is the world's top producer of silver, No. 2 in copper and zinc, and ranks sixth in gold. (Reporting by Teresa Cespedes; Editing by Walter Bagley)