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13 August 2004


Workers cancel strike threat in Mexico

Source: Associated Press

Workers at Mexico's biggest copper mine accepted new contract terms late Thursday, removing the threat of a strike at the Grupo Mexico facility.

The National Mining, Metallurgical and Similar Workers Union said in a press release that workers at Grupo Mexico's Cananea facility, in the northwestern state of Sonora, voted in favour of the company's offer.

Earlier this week, the union had agreed to extend its strike deadline to Friday in order to consider the company's offer. The union said it will now remove the strike threat.

In a separate negotiation, the union said that workers at Grupo Mexico's zinc refinery in San Luis Potosi also accepted the company's proposed labour terms.

Grupo Mexico is the world's third largest copper producer, with operations in Mexico, Peru and the United States. Cananea is the company's largest copper mine, having turned out about 65,000 metric tons of the metal in concentrate in the first six months of this year. It also has an SX-EW facility that produced 25,000 metric tons of refined copper in the same period.

The union said it managed to negotiate a profit-sharing agreement and other benefits for the workers.

A nearly three-week-long strike was settled July 30 at Grupo Mexico's La Caridad operation, which produces 140,000 metric tons (155,000 tons) a year of copper in concentrate and has a refinery that produces about 250,000 metric tons (275,000 tons) of year of refined copper.