Freeport-McMoRan Copper & Gold Inc’s Peruvian unit, which ended a 61 day strike last month, said it signed a three year labor accord with workers that will enable it to move ahead with a USD 3.5 billion expansion.

Union official William Camacho said that the agreement with Freeport’s Sociedad Minera Cerro Verde SAA copper mine, which lasts through August 2014, includes a 5% wage rise in 2012, 4% annual increases over the following two years and a 24,000 soles (USD 8,888) signing bonus.

Mr Camacho said that “We’ve achieved a temporary peace, although there are still issues pending.” He added that “This process strengthened our union and will set a precedent for future mining negotiations in Peru.”

Workers in Peru, Chile, Bolivia and Indonesia held stoppages at copper, gold and zinc mines this year to pressure for better conditions and a bigger percentage of record profits after metal prices surged. Workers at Freeport’s Grasberg mine in Indonesia ended a three-month strike last week after agreeing on a wage increase.

(Sourced from Bloomberg)