www.fcx.com
Freeport-McMoRan is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates a portfolio of operating, expansion and growth projects in the copper industry and is the world’s largest producer of molybdenum.
Freeport-McMoRan says Grasberg strike to impact Q3 resource sales
Mining giant Freeport-McMoRan (NYSE:FCX) said Wednesday that it was losing 3 million pounds of copper and 5,000 ounces of gold per day due to industrial action at its key Grasberg mine in Indonesia.
As at 9.36am EDT, shares were down 3% at $37.40.
Industrial action at the mine, operated by Freeport's 94%-owned subsidiatry PT Freeport Indonesia (PT-FI), may impact third-quarter estimates for copper and gold sales, it said. In July, Freeport estimated third-quarter sales of 940 million pounds of copper and 415 thousand ounces of gold.
The strike at the Indonesian mine began September 15 and has limited mining, milling and concentrate shipping activities. Half of the 8,000-strong work force have reported to work, the company said.
Freeport said it was developing revised operating plans to begin increasing mining and milling rates with a reduced work force.
In a statement, chairman, James R. Moffett, and president and CEO of Freeport, Richard C. Adkerson, said: "The PT-FI management team continues to work diligently and constructively to reach agreement on a new labor agreement that is reasonable and fair to all parties."
"We are committed to maintaining an attractive work environment for our employees and look forward to concluding the negotiations on a mutually agreed basis as soon as possible."
The Grasberg mining district contains the world’s largest recoverable copper reserve and the largest gold reserve and due to the size of the mine, Freeport is Indonesia's largest taxpayer.
In 2010, Grasberg's contribution to the Indonesian government and the local community, including taxes and domestic wages, totaled more than $3.8 billion.
