By I Made Sentana and Deden Sudrajat
JAKARTA--Indonesia's government is likely to allow the local
unit of Freeport-McMoran Copper & Gold Inc (FCX) to resume
open-pit mining in the giant Grasberg mine in Papua province later
this week, a minister said Tuesday.
"The local government urged me to allow the open-pit mining to
be resumed, and the team that investigated [the cause of the tunnel
collapse] has also recommended that the open-pit mining can be
resumed," Minister of Energy and Mineral Resources Jero Wacik told
reporters.
After an underground training facility at the mine collapsed on
May 14, killing 28 workers, Jakarta told Freeport's local unit PT
Freeport Indonesia to halt all mining while it investigated the
cause of the accident.
Mr. Wacik said Tuesday that investigation shows water seepage
likely weakened the tunnel supporters and caused the tunnel to
collapse.
Because of the temporary disruption, PT Freeport Indonesia
notified its customers of a force majeure event under its
concentrate sales agreements.
PT Freeport Indonesia's copper production fell by about 80
million pounds and gold production by about 80,000 ounces between
May 15 and June 12 because of the disruption, the U.S.-based
company said on June 12.
Write to I Made Sentana at i-made.sentana@dowjones.com
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