Reuters reported that Asarco's miners have agreed with Grupo Mexico to extend their existing contract for another year, staving off fears of labor troubles after the Mexican company regained control of the US copper miner.

Mr Juan Rebolledo executive of Grupo Mexico said that said that "We have reached an agreement on the extension which we offered. This is good news."

Grupo Mexico won back control of bankrupt Asarco last year after a drawn out court battle. During the bankruptcy trial, the steelworkers union backed a rival bid by India's Sterlite and refused Grupo Mexico's proposal to extend the existing labor agreement.

The union had said that it would strike if Grupo Mexico did not draw up a new contract, but now the workers have changed their stance, accepting the company's original offer.

(Sourced from Reuters)