Union may strike at Peru's Antamina copper pit

By Patricia Velez

LIMA, Nov 4 (Reuters) - Workers at Antamina, a major copper pit in Peru, said on Wednesday contract talks with the company are at an impasse and they may go on strike.

The company and the union are scheduled to meet on Monday, after which workers will decide whether to continue talks or walk out, union leader Francisco Marinas told Reuters.

The union and Antamina are negotiating a new contract to replace a three-year agreement that expired in late July.

Labor negotiations 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 at a major mine in Peru after the start of the economic crisis last year, and may help set the tone for contracts at other large mines.

"The situation is tense. There is a lot of worry among workers," said Marinas. "We want to help so that this negotiation goes well, but we see things as stuck."

About the possibility of a strike, he said: "We are ready, prepared."

Officials at Antamina said talks were set to continue.

"Dialogue has not been broken ... Both sides have presented their positions and they're being analyzed," said Gonzalo Quijandria, an Antamina spokesman.