Peru's only iron producer said it has declared force majure on its deliveries after its 1,124 workers, demanding better wages, downed tools on Wednesday in an indefinite strike.

Mr Raul Vera the company's general manager said that the company's 1,124 workers laid down their tools on Wednesday in an indefinite strike demanding higher salaries.

He said that "We've declared force majeure due to the strike, production has completely stopped referring to a contract clause that frees it of liability over delays.

Shougang Hierro Peru a unit of the Chinese Shougang Group produced 6.04 million tonnes of iron ore in 2010. It mines in southern Peru, near the city of Ica.

The company mostly ships its products, including Special High Grade Sinter Feed Concentrate, High Grade Pellet Feed, Blast Furnace Pellets and Direct Reduction Pellets overseas.

(Sourced from Thomson Reuters)