SUPPLY NEWS - Freeport Indonesia halts open-pit mining at Grasberg

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Singapore 04/10/2016 - By Shivani Singh

PT Freeport Indonesia (PTFI) reported that copper-gold mining operations in the Grasberg open pit have stopped due to a labour disruption, a company official said in an emailed statement to Metal Bulletin on Tuesday.

“Underground mining operations have not been impacted and milling operations continue at a reduced rate,” company spokesman Riza Pratama said.

So far there have been no shipment delays, he added.

PTFI is working to address these issues and to restore open-pit mining operations as soon as possible, Pratama said.

There are about 1,000 employees who have been on strike since September 28, the company added. In 2015, workers had blockaded entry to Grasberg.

Local media reports from Indonesia cited union workers were demanding better conditions including bonuses.

PTFI employs about 24,000 workers. During the January-June period it produced 155,400 tonnes of ore per day of which 110,200 tonnes came from open pit operations with the rest coming from underground mining.

The Grasberg mine is expected to transition from open pit to underground operations in early 2018 with the underground mine producing large quantities of copper and gold.

Metal Bulletin, the global metals and mining price reporting agency, recently acquired 100 percent of the shares of FastMarkets Ltd.



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