Shougang's Peru unit declares force majeure on iron shipments
LIMA, Sept 2 (Reuters) - Iron miner Shougang Hierro Peru , a unit of China's Shougang Group, declared force majeure on its shipments because of an ongoing strike that has curbed output, the company said on Tuesday.
Shougang's country manager, Raul Vera, said the company moved to exempt itself from contractual obligations last week after a deal with workers fell through. Force majeure is a condition that permits a company to cancel those obligations due to an event or effect that can't be controlled.
The strike started 15 days ago.
Vera and union leader Julio Ortiz both said they expected the government to settle the dispute this week.
"An agreement has not been reached with the company. Now it is up to the labor ministry to issue a resolution that defines a solution," said Ortiz.
Workers have been pushing for better wages and work conditions.
Last year, authorities ended a similar strike at Shougang by setting a mandatory wage increase and ordering strikers back to work.
Shougang produced 6.7 million tonnes of iron from its mine in Peru's southern Ica region in 2013, according to government figures. (Reporting by Teresa Cespedes; Editing by Jeffrey Benkoe)
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