The on-going strike by workers of Shougang Hierro Peru mine, a unit of China’s Shougang Group, has forced the company to halt its iron ore production and declare force majeure on shipments.
Shougang Hierro Peru country manager Raul Vera was quoted by Reuters as saying: "We are without activity.
"There is no production at the mine due to the work stoppage."
In early August, the workers’ union announced that it would begin an indefinite strike from 18 August at the mine in Peru’s southern Ica region. The decision has been backed by Peru’s labour ministry.
According to a union leader, Julio Ortiz, workers are demanding a PEN15 ($5.26) raise in basic daily wages; however, it is claimed that the company has only offered an extra PEN2.8 ($0.98) a day.
Vera told the news agency that: "The regional office of the labour ministry in Ica…already has the technical and economic information needed and should produce a resolution in coming days."
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Shougang and the union hope that the Peruvian Government will resolve the issue this week by setting mandatory wage increments.
According to government figures, Shougang Hierro Peru is the only iron ore producer in the country and produced around 6.8 million tonnes of the mineral in 2013.
The latest strike comes one year after Shougang workers’ previous 30-day strike, which forced the company to stop production and shipments.