By Melodie Warner
Freeport-McMoRan Copper & Gold Inc.'s (FCX) Indonesian unit
has resumed open pit mining and concentrating activities at its
Grasberg mine in Papua Province and is working with government
authorities to restore underground operations.
PT Freeport Indonesia said Saturday the government approved the
resumption of production and open-pit operations at Grasberg, one
of the world's largest open-pit copper mines and the largest gold
mine, which is located in Indonesia's easternmost province.
The company said the resumption of production activities is
being conducted in a phased approach.
The company had suspended operations May 14 after 28 workers
died when an underground training facility near the Big Gossan mine
collapsed. Freeport Indonesia had hoped to resume work quickly. But
the government, which owns a 10% stake in the company, said
production couldn't continue until investigations were
completed.
Freeport-McMoRan said Monday the ongoing suspension of
underground operations will reduce production by an estimated 1
million pounds of copper and 1,000 ounces of gold per day.
Shares were recently trading 2.3% lower at $27.52 premarket. The
stock has fallen 18% since the start of the year through Friday's
close.
-I Made Sentana contributed to this report.
Write to Melodie Warner at melodie.warner@dowjones.com
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