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Chile Halts Teniente Copper Mine Again Due to Strike

Reuters
Apr 24, 2008



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SANTIAGO—Chilean copper giant Codelco on Thursday suspended operations at its Teniente division again, citing injuries caused by striking subcontractors who threw rocks at buses transporting permanent workers.

"Last night and this morning buses carrying workers were stoned again, injuring a (bus) driver and a restaurant worker," said state-run Codelco, the world's No.1 copper producer with annual output of about 1.7 million tonnes.

It was the latest in a series of sometimes violent strikes by subcontractors, who stopped work on April 16. Two other Codelco divisions have been closed for nine days amid the job actions, which have helped keep copper prices high.

The workers are demanding higher pay and better working conditions at a time of windfall mining revenues amid record-high copper prices and strong global demand.

"For security reasons, the administration decided to suspend last night's and this morning's ... shifts," Codelco said in a statement on its Web site www.codelco.cl. "As a result, the division is halted."

Teniente, 50 miles (80 km) south of Santiago, produced 405,000 tonnes of copper last year. Codelco's Norte and Ventanas divisions are running normally.

Codelco's Andina and Salvador divisions, which between them produce nearly 300,000 tonnes of copper per year, remained closed.

Subcontractors from the Confederation of Copper Workers, which groups more than 30,000 workers at Codelco, demand perks in line with the company's permanent employees.

They also want Codelco to absorb 5,000 members into its full-time ranks.

On Wednesday, Codelco said it was progressing in talks with the subcontractors toward a deal to end the strike. Subcontractors from the Confederation also indicated this week that an end to the strike could be near.

Subcontract companies negotiating with the union have agreed to pay part of a bonus early to their workers at Codelco divisions.

Sources close to the negotiations said on Wednesday the government had put pressure on Codelco to reach a quick end to the conflict.


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