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22 February, 2010
Workers, on strike at three Buenaventura gold and silver mines in Peru since 13 February, were forced to return to work on Saturday 20 February. Peruvian law requires mining companies to share 8% of profits with workers, and miners say Buenaventura has underreported its profits. Union leaders are demanding information regarding the company’s finances for the period 2006-2009.
Buenaventura is Peru’s largest precious-metal mining house, and the struck mines included the ones at Orcopampa, Uchucchacua, and Antapite.
FNTMMSP Gen. Sec. Luis Castillo Carlos
The ICEM affiliate, National Miners’ and Metalworkers’ Union (FNTMMSP), the country’s largest mining union federation, was forced to end the strike at the weekend to avoid workers’ losing their jobs, as the Ministry of Labour ruled the strike was illegal. FNTMMSP General Secretary Luis Castillo Carlos, however, said that the 4,380 mineworkers of Buenaventura will likely strike again starting 3 March.
Castillo announced that the union will hold workers’ assemblies over the coming days to vote on renewed strike action. He said renewed strike approval is expected to be granted. Peru’s tax agency Sunat is reviewing Buenaventura’s tax law compliance.
Orcopampa and Antapite are gold producing mines, while Uchucchacua is a silver mine. The strike halted production at Orcopampa and Uchicchacua, while production continued at Antapite but at a reduced rate.
In the third quarter of 2009, Buenaventura sold a total of 106,000 ounces of gold, and 3.76 million ounces of silver. Antapite, the smallest of the three mines, produced some 965,227 fine grams of gold in 2009. Orcopampa produced 8,549,730 fine grams of gold in 2009, while Uchucchacua produced 286,039 fine kilograms of silver.
Globally, Peru is the largest producer of silver and the sixth largest producer of gold.