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Workers end strike at Nexa Resources zinc refinery in Peru

Lima — Operations at Nexa Resources' zinc refinery in Cajamarquilla, Peru, wererunning normally Monday after workers ended a five-day strike, a unionofficial said.

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About 314 workers who had downed tools March 5 at the refinery on Lima'soutskirts returned to work after being threatened they would be fired,Sitrazinc union General Secretary Simon Diaz told S&P Global Platts. Peru'sLabor Ministry declared the strike illegal last week.

"To prevent our bases being bled by an imminent dismissal process, anassembly agreed to suspend the strike," Diaz said in a telephone interview."This suspension will enable us to continue to discuss economic aspects andovercome the threat of dismissal."

Nexa confirmed the end of the strike and the restart of talks overprofit-sharing in a statement.

Nexa, which also controls the Milpo and Atacocha zinc-lead-silver mines inPeru, refined 312,339 mt of zinc, 59,980 kg of silver, 4,589 mt of copper and797 mt of cadmium last year, according to the Energy & Mines Ministry. Thecompany also has capacity to produce 76 mt/year of indium, its website says.

Nexa, which acquired the refinery from Teck Cominco in 2004, completed a$500 million expansion to double installed capacity in 2010.

Peru, the world's third-largest zinc miner, produced 1.47 million mt ofzinc last year. Workers also have gone on strike over the past 12 months atmines operated by Southern Copper, Freeport-McMoRan and Minsur.

--Alex Emery,

--Edited by Richard Rubin,