Freeport Unlikely To Resume Supply From Grasberg Copper-Gold Mine Soon
01 November 2011 - 12:59PM
Dow Jones News
Freeport-McMoRan Copper & Gold Inc. (FCX) isn't likely to
resume supplies from its Grasberg mine in eastern Indonesia soon,
as a senior official said Tuesday that it hasn't yet repaired pipes
used to transport concentrates, while a labor dispute at the mine
remains unresolved.
"Fixing the concentrate pipes will take a long time," Chief
Administration Officer Shinta Sirait told a news conference,
without providing a timeframe. "The force majeure will remain in
place until we can send concentrates to buyers."
Freeport's local unit has declared a force majeure on
concentrate shipments from the Grasberg mine since Oct. 22, Sirait
said.
Also, workers at the world's third-largest copper mine have been
on strike since Sept. 15, demanding a significant hike in the
minimum wage of about $1.50 an hour. They also held an eight-day
strike in July.
Sirait said the strike has led to daily losses of $18
million-$19 million for Freeport and about $8 million for the
government.
The company last held wage talks on Oct. 21 and offered a
minimum monthly wage of IDR11 million (around $1,200), which would
be raised to IDR19 million next year.
But the workers are demanding a minimum wage of $7.50 an hour or
about IDR78 million a month, Sirait said.
-By Deden Sudrajat, contributing to Dow Jones Newswires; 62 21
39831277; andreasismar.sandiwan@dowjones.com
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