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UPDATE 1-Protesters block roads at Southern Copper Peru

Wed Jun 11, 2008 1:20pm EDT
 
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LIMA, June 11 (Reuters) - Protesters blocked roads leading into Southern Copper's (PCU.N: Quote, Profile, Research, Stock Buzz)(SPC.LM: Quote, Profile, Research, Stock Buzz) Ilo smelter and Cuajone mine in Peru on Wednesday, as miners nationwide face growing demands from workers and communities.

The protesters live nearby and have demanded the miner, one of the world's largest copper producers, provide more financial assistance to their towns.

Laborers and the poor in the Andean country want a larger share of profits that mining companies are reaping from record prices for commodities. President Alan Garcia, whose approval ratings hover near 30 percent, is under pressure to make sure the benefits of a six-year economic boom reach the poor.

"Everything is blocked," said Roman More, head of the union at the Ilo smelter.

The company said the blockages had not yet hurt shipments or output.

"In the worst-case scenario, we'd have to suffer the protests for days before running into trouble," a company official said.

Southern, controlled by Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research, Stock Buzz), produced 30.2 percent of Peru's copper output last year, which totaled 1,190,281 tonnes. Its Toquepala mine was not affected by the protests.

In addition to the protests, More said there is a chance Cuajone could go on strike next week, which would occur in the run up to a nationwide strike called for June 30 by Peru's largest federation of mining unions.  Continued...

 

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