Drummond said work had recommenced at the operation last week, with miners receiving a 9.1% pay increase and a bonus of $US1109 (2 million pesos) within the next 30 days.

Pribbenow, an opencut mine, employs 3500 workers and produces approximately 2 million tonnes of coal each month.

Another strike in the country, by 400 Glencore workers at its La Jagua operation, was averted just days before a planned stoppage.

Funtraenergetica labour organisation president Joaquin Romero told Reuters July 15 that the miners will get a pay increase of 9% in the first year and 1.6% in the second under the new agreement.