UPDATE 1-Peru mining strike ends after nearly one week

(Recasts, adds union confirmation)

By Teresa Cespedes

LIMA, July 6 (Reuters) - Peru's largest federation of mining workers decided on Sunday to end its nationwide strike after nearly one week, union leaders and the country's vice minister for labor said.

Mine workers, hoping to grab a bigger slice of sky-high metals prices, held the walkout to demand Congress pass a bill that would lift caps on profit-sharing. They also wanted a shorter work day and improved retirement rules.

"The mining federation has handed in a document saying they will be lifting the strike tonight," Vice Minister Jorge Villasante told Reuters.

He met with union leaders on Sunday to try to forge an agreement to end the walkout, which included a promise that the government would lower minimum retirement ages for mine workers.

"The strike ends at midnight," Vidal Espinoza, a labor leader, told Reuters.

Global copper prices MCU3 rose to record highs last week amid worries that supplies from Peru, the world's No. 2 supplier, would be crimped. Peru is also a leading exporter of precious metals, zinc and lead.

The nationwide strike hit some key mines owned by global mining companies, but production was only affected at a few mines as managers called in temporary workers.