Peruvian copper mining company Sociedad Minera Cerro Verde SAA, (CVERDEC1.VL) said Thursday that it expects to reach an agreement with striking union workers soon.

"We are working together with the union and fairly soon will come to an agreement," said Cerro Verde general manager Bruce Clemens.

About 1,200 union workers at the mine began an indefinite strike on Wednesday to demand higher pay. Clemens said the strike is not expected to have any immediate impact on output.

Cerro Verde is Peru's third-biggest copper producer with mines in the Arequipa region. Cerro Verde is majority-controlled by Freeport-McMoRan Copper & Gold (FCX). Compania de Minas Buenaventura SA (BVN, BUENAVC1.VL) and a subsidiary of Sumitomo Corp. (SSUMY, 8053.TO) also have stakes in the company.

The company produced 668 million pounds of copper in 2010. Cerro Verde is carrying out a $3.5 billion expansion plan that will triple throughput to 360,000 tons per day.

The expansion will allow Cerro Verde to increase copper output to 1 billion pounds, Clemens said. He added that Cerro Verde will submit the environmental impact study to authorities in the fourth quarter of 2011.

The environmental impact study is a key permit required to develop projects.

Peru is the world's second biggest producer of copper. It is also a major producer of silver, gold and zinc and other minerals.

-By Ryan Dube, Dow Jones Newswires; 51-945 043 802; peru@dowjones.com

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