Chile Collahuasi Copper Mine Ops Normal After 24-Hour Strike

SANTIAGO, Jul 31, 2011 (Dow Jones Commodities News via Comtex) -- Following a 24-hour strike, operations at Chilean copper mine Dona Ines de Collahuasi returned to normal, the company and the workers' union said.

The one-day warning strike was held on the heels of a now week-long stoppage at Escondida, the world's largest copper mine, which is fueling supply concerns in the copper market and driving prices higher.

While Collahuasi represents about 3% of annual global output, Escondida accounts for 7% of global copper production.

The sole union at Collahuasi, which represents 1,551 workers or 90% of the union-eligible work force, called the stoppage a "complete success" while the company noted that production at the mine hadn't bee halted as a result of the strike.

Last year, Collahuasi workers went on strike for 33 days after contract negotiations reached a standoff. It was the longest strike at a privately held copper mine in Chile's history.

Global diversified mining companies Xstrata PLC (XTA.LN) and Anglo American PLC (AAUKY, AAL.LN) each hold a 44% stake in the mine, while a consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the remaining 12%.

The mine is located 185 kilometers (115 miles) southeast of the port of Iquique, high in the Andes Mountains at 4,400 meters (14,520 feet) above sea level.

Chile is the world's leading copper producer, accounting for a third of global supply.