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Labor unions not in a rush to resume open pit mining in Freeport's Grasberg mine

Mining News  |  2013-05-28 07:36:17

The Freeport's Grasberg copper mine in the Indonesian eastern Papua province could soon resume the open-pit mining operations, says Indonesia's deputy Minister for Energy and Mineral Resources

JAKARTA (Scrap Monster) : The Freeport’s Grasberg copper mine in the Indonesian eastern Papua province could soon resume the open-pit mining operations, says Indonesia’s deputy Minister for Energy and Mineral Resources.

The maintenance activities are underway in the open-pit, which accounts for two-thirds of the total copper production. The mining can resume once the safety audit is completed. The Indonesian government’s investigation into the tunnel collapse which killed 28 people is still on and is expected to extend for another 2 months. Apart from the government investigation, the Freeport management is also conducting an independent investigation by experts.

However, the labor unions are yet to confirm the exact date of resumption of work. The labor unions have so far extended their support only to the maintenance activities carried out in the open-pit, not to the production activities. The workers are reported to have refused to return to their work. As per estimates, every day of closure costs the company $15 million in revenues.

Freeport-McMoRan Copper & Gold Inc., (FMCG)  is one of the world's largest producers of copper and gold. Its headquarters are located in the Freeport-McMoRan Center in downtown Phoenix, Arizona. Freeport is the largest publicly traded copper and molybdenum producer in the world. It mines and mills ores containing copper, gold, molybdenum and silver.

The Grasberg Mine is the largest gold mine and the third largest copper mine in the world. It is located in the province of Papua in Indonesia near Puncak Jaya, the highest mountain in Papua. It employs nearly 24,000 contract and non-contract staff.

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