Freeport-McMoRan Copper & Gold Inc. (FCX) lowered its
fourth-quarter sales volume projection as it also unveiled an
agreement with labor leaders in Indonesia, ending a three-month
strike.
The world's largest copper producer projected fourth-quarter
sales volume of 800 million pounds of copper and 105,000 ounces of
gold, down from its October view for 915 million pounds of copper
and 305,000 ounces of gold.
Freeport-McMoRan said the new fourth-quarter shipments estimate
includes anticipated impacts owing to strike-related
disruptions.
The company on Wednesday said that repairs to pipelines damaged
during the strike are substantially complete and its has begun to
ramp-up milling operations that were suspended Oct. 22. Shipments
are expected to remain limited until full operations are
restored--expected early next year.
Under the agreement that extends the union's contract by two
years, workers at the Indonesia operations would see base wages
rise 24% in the first year of the contract and 13% in the second
year. The accord also includes improvements in benefits and a
one-time signing bonus equivalent to three months of wages. Workers
are expected to begin reporting to their jobs in coming days,
according to the company.
Freeport in October had reported that third-quarter earnings
fell 11% as the company's mining output shrank amid the strike,
though revenue was boosted by higher metal pricing.
Shares were down 1.3% at $37.29 in recent premarket trading. The
stock through Tuesday's close is down 37% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com