Union activists suggest Mexico's federal government is actually fighting two wars; one against the drug cartels and the other against the National Miners Union campaign at Grupo Mexico operations.

In a growing battle that may be diverting Mexican federal police away from the country's deadly narco war, Grupo Mexico announced that it has declared force majeure at the La Caridad smelter and refinery complex as Los Mineros union members have blocked contract workers from entering the facility.

In a filing with the SEC, Grupo Mexico subsidiary Southern Copper Corporation said that the refinery is operating at a reduced capacity forcing Mexcobre, the operating company of La Caridad to notify all of its clients and supports about this commercial force majeure situation.

SCC said that Mexcobre has formally demanded that state authorities increase the presence of security forces at Esqueda town in Sonora located approximately 22 kilometers from its industrial facilities, which is where most of its workers and employees reside.

News reports from the state of Sonora said violence has erupted in the copper towns of Cananea and Nacozari de Garcia between members of the National Union of Mine and Metals Workers commonly referred to as Los Mineros and replacement workers. State and federal police are guarding mining facilities at both Cananea and La Caridad.

In 2006 miners in Nacozari agreed to join a union sponsored by Grupo Mexico. However, on August 20th, these miners voted to rejoin the National Miners Union. A mass firing occurred on August 31 which was enforced by a thousand federal police. At the time, United Steelworkers International President Mr Leo Gerard declared that instead of deploying the police to protect its citizens from the drug cartels the Mexican government is using them to bust democratic unions run by the workers and not the company.

Meanwhile, hundreds of police officers remain in place guarding the La Cananea mine which is Mexico's largest copper operation. Earlier this week a 40 year contract worker died and 3 others were seriously wounded by bullets.

Contract workers were hired at Cananea to clean and repair the mine which was idled by 3 year long labor dispute. Grupo Mexico said that we are informing and denouncing the aggression of the union for attacking contract workers with rocks and bullets who work at the mine.

Grupo Mexico announced that it plans to mine molybdenum for the first time at the copper mine. The company also plans to commence USD 3.8 million expansion plan by the Q4 of 2012 to double the 180,000 tonne copper capacity.

Felipe Calderon president of Mexico has been accused by labor unions of waging a war against independent trade unions. Labor leaders accuse the Mexican government of persecuting Los Mineros, which has not only been involved in mining labor battles. US auto parts company Johnson Controls was accused of collaborating with the Mexican government in attacking members of the newly recognized union at the company, the National Union of Mine and Metal Workers.

(Sourced from www.mineweb.com)