Peruvian mines hit by nationwide strike

By Dana Ford and Teresa Cespedes

LIMA (Reuters) - Workers at several big mines in Peru went on strike Monday and joined a nationwide walkout, hoping to pressure Congress to pass a bill that would give them a greater share of profits from sky-high metals prices.

The strike, which pushed global copper prices to a two-month high of $8,620 (4,326 pounds) per tonne, will test President Alan Garcia at a time he is losing sway in Congress. He has tried to persuade legislators to approve the labour law, but has so far failed.

Labourers downed tools at some big mines, but reported for work at others in Peru, the world's leading silver producer and second-largest copper and zinc miner.

"Our demands are just and urgently needed, necessary for the mining sector," said Luis Castillo, head of Peru's largest federation of mining unions.

Mineral exports from Peru have helped fuel a six-year economic boom, but mine workers say they are not getting a fair share of the boom.

President Alan Garcia is facing demands to spread the wealth to workers and the poor, or risk losing support for his free-market policies at a time when left-wing parties are eyeing elections in 2011.

MINES SLOWED

Workers were on strike at the Ilo smelter and Cuajone mine of Southern Copper, one of the world's largest copper producers, union leader Arnaldo Oviedo said. But company officer Alberto Giles said production was barely affected and temporary workers were being used.