UPDATE 1-Chile May copper output down 5.4 pct yr/yr

* May copper output down on brief labor strife

* Molybdenum production up 12.1 pct in May
(Adds molybdenum output, and details on fall in production)

SANTIAGO, June 30 (BestGrowthStock) – Chile, the world’s No. 1
copper producer, said on Wednesday its output of the metal
(CLCOPP=ECI: ) fell 5.4 percent to 430,736 tonnes in May from the
same month a year earlier.

In April, Chile’s copper output rose 6.4 percent from the
same month in 2009, according to data released last month. The
accumulated January-May copper production rose 1.3 percent
compared with the same period last year.

Output fell due to a labor conflict that hurt output at key
deposits and non-programmed machinery maintenance during that
month, the national statistics institute said.

A workers strike at the massive Collahuasi copper mine in
May halted output for several days. Police cleared out workers
blocking mine access roads, but tensions over temporary
workers’ pay and labor conditions is seen as a latent threat to
operations in the mining powerhouse. [ID:nN19259060]

Molybdenum output rose 12.1 percent to 3,015 tonnes in
May.

Chile’s copper industry, the backbone of its economy,
emerged virtually unscathed from a Feb. 27 earthquake that
killed hundreds of people and battered the wood pulp, fishing,
fruit and wine industries.

Investment Analysis

(Reporting by Alonso Soto; Editing by Walter Bagley)

UPDATE 1-Chile May copper output down 5.4 pct yr/yr