Chile Collahuasi Mine Still Closed On Contract Workers' Strike

The Collahuasi copper mine, located in northern Chile, remains closed on a contract workers' strike, the company said Tuesday.

On Friday, contract workers from several mining service providers went on strike seeking better working conditions and wages.

They blocked the access road to the mining compound, located some 4,500 meters above sea level in the Andes mountains.

"To [maintain] people's safety, Collahuasi has suspended production and is asking the contracting companies to intervene with their workers," the company said in a statement.

The striking workers have blockaded the mining compound, leaving some 4,000 workers, including 1,000 Collahuasi staff workers, stranded inside the complex with limited access to food and water, Collahuasi said.

This strike is considered illegal as the workers aren't in the process of negotiating new contracts. According to Chilean labor laws, workers can strike during collective-bargaining process.

Collahuasi produces about 500,000 tons of copper a year, or about 10% of Chile's output.

Diversified mining companies Xstrata PLC (XTA.LN) and Anglo American PLC (AAL.LN, AAUKY) each own a 44% stake in the mine, with the rest held by a consortium led by Mitsui & Co. (MITSY, 8031.TO).

-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919; carolina.pica@dowjones.com

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