By Saabira Chaudhuri
Freeport-McMoRan Copper & Gold Inc. (FCX) said the estimated
daily impact of temporarily suspending its operations following a
fatal roof collapse at its Indonesia underground training facility
last month is about three million pounds of copper and 3,000 ounces
of gold.
A tunnel collapsed at Freeport-McMoRan's giant Grasberg mine in
Papua province May 14, killing 28 workers undergoing safety
training. The other 10 in the training session were rescued.
The training facility is located near its largest underground
mine, the Big Gossan, in Papua province. The company shut down
operations at all its mines in Papua for safety checks.
For the period between May 15 and Tuesday, the company said the
estimated impact on PT Freeport Indonesia's production was about 80
million pounds of copper and 80,000 ounces of gold.
"This was an unprecedented event in our more than 40-year
history of operations in Papua," Chairman James R. Moffett and
Chief Executive Richard C. Adkerson said. "We are taking all
actions required to prevent future incidents and to assure the
safety of our workforce."
The Grasberg minerals district in Indonesia is one of the
world's largest copper and gold deposits.
Freeport-McMoRan said PT Freeport Indonesia has conducted safety
inspections throughout its operations and is working with the
Indonesian Department of Energy and Mineral Resources and other
authorities to resume operations in a phased approach.
Because of the temporary disruption, PT Freeport Indonesia
notified its customers of a force majeure event under its
concentrate sales agreements.
Shares rose 1.2% to $29.68 in recent premarket trading. The
stock has dropped 13% in the past 12 months.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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