Labor Resolution Seen Possible At Peru's Antamina Mine

LIMA -(Dow Jones)- A resolution of contract talks at Antamina SRL, one of Peru's largest base metal mining companies, could take place this week.

A union leader at the mine, which is in the Ancash district about 270 kilometers northeast of Lima, said Wednesday morning that negotiations were currently positive, with an improved offer from the company on the table.

Sources close to the negotiations suggest the new offer could be signed tomorrow.

Antamina, which was scheduled to attend official mediated labor discussions Tuesday in Lima, said Wednesday the company had not attended the meeting.

Antamina confirmed it had received an official invitation to mediated talks held at the labor ministry on Tuesday, but said its attendance was not necessary.

"It was not necessary for us to go to the ministry as we are continuing dialogue with the workers," an Antamina spokesman said.

One union official said however that a strike was still possible.

The chief of Peru's Mining Federation, Luis Castillo, said the no- show by the company at the mediation talks had brought the possibility of a strike closer.

"There will be a general assembly of the workers Friday morning to discuss official strike action," said Castillo.

Compania Minera Antamina SA is one of Peru's largest producers of copper and zinc. The mine, in Peru's central highlands, is a joint venture of BHP Billiton Ltd. (BHP), which holds a 33.75% stake, Xstrata PLC (XTA.LN), with 33.75%, Teck Resources Ltd. (TCK) with 22.5% and Mitsubishi Corp. (8058.TO, MSBHY), which has 10%.

Antamina produced 252,756 metric tons of copper and 340,552 tons of zinc during the first nine months of this year.

-By Sophie Kevany, Dow Jones Newswires; 51-198-903-8043; sophie.kevany@dowjones.com

(END) Dow Jones Newswires

November 25, 2009 11:22 ET (16:22 GMT)

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