Reuters reported that Grupo Mexico and miners at its US copper mining unit Asarco agreed to extend their existing contract for two more years.

The contract covers 2,100 workers at Asarco's operations in Arizona and Texas and will now be valid until 2013. Grupo Mexico lost control of Asarco's board when the company went bankrupt over costly environmental claims but then it regained control in 2009 after a drawn out court battle, beating out rival bids.

During the court case, Asarco's union threatened a strike if Grupo Mexico won but then backed off that stance. Grupo Mexico has had ongoing labor problems at several of its Mexican mines, recently restarting production at the massive Cananea pit near the US and Mexico border that had been shut for nearly 3 years by a strike.

Asarco mines around 350 million to 400 million lbs of copper each year and operates a copper smelter in Hayden, Arizona which produces almost half a billion lbs of anodes annually. Another refinery in Texas and SX and EW plants at the Ray and Silver Bell mines produce about 375 million lbs of refined copper per year.

(Sourced from Reuters)