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Chile's strike-hit Collahuasi says output normal

Published 11/13/2010, 09:33 AM
Updated 11/13/2010, 09:36 AM
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* Collahuasi is world's No. 3 copper mine

* Fears of supply shock have fueled copper prices higher

* Experts say Collahuasi well prepared, but expect impact

SANTIAGO, Nov 13 (Reuters) - Output at Chile's Collahuasi remained at normal levels on Saturday, the ninth day of a pay strike at the world's No. 3 copper mine, a spokeswoman for the mine's operator said.

The mine, which is jointly owned by Xstrata and Anglo American, is operating as usual due to a contingency plan put in place during the stoppage, said spokeswoman Bernardita Fernandez.

"Operations are normal today and are being carried out in accordance with the (contingency plan) and there have not been any incidents linked to the strike," she said.

Collahuasi has not declared force majeure and said it can keep producing and delivering copper for weeks through the use of replacement workers and non-union employees.

Industry specialists have said Collahuasi prepared well for the strike by stocking up copper to meet deliveries but that operations were probably being affected.

The protest at the mine, which extracts 3.3 percent of the world's mined copper, or 535,000 tonnes a year, has helped push global copper prices higher on supply fears.

The strike by the Collahuasi union is the biggest stoppage at a private deposit in Chile, the world's top copper producer, since 2006 when workers walked off the job for 26 days at the world's biggest copper mine, Escondida. (Reporting by Maria Jose Latorre; Writing by Helen Popper) (helen.popper@thomsonreuters.com; +54 11 4318 0655; Reuters Messaging: helen.popper.reuters.com@reuters.net))

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