Freeport-McMoRan Copper & Gold Inc.’s (FCX) Grasberg mine in Indonesia raised its copper concentrate production to more than 4,000 tons per day in October. The increased output comes despite the strike at Grasberg mine, which was extended by another month to mid-November.
The total concentrate output is now expected to be 79,000 tons by the end of this week, which was only 54 tons on September 18, just days after the start of the strike by approximately half of its workforce.
Earlier, last month Freeport-McMoRan announced it was unlikely to meet its third-quarter 2011 sales estimates due to the strike. It then estimated the impact on production at about 3 million pounds (1,361 tons) of copper and 5,000 ounces of gold for each day of the stoppage.
Striking miners, whose union is pushing for higher pay of between $12.50 and $37 an hour versus a current rate of $1.5 to $3 an hour, are not getting paid while striking. The region is one of Indonesia's poorest. It is seen that Freeport workers in other parts of the world get 10 times their current level.
As per the union, Freeport's total work force in Indonesia was 23,000, and that more than 12 000 of these were union members and still striking.
Headquartered in Phoenix, Arizona, Freeport-McMoRan Copper & Gold Inc. is engaged in mineral exploration and development; mining and milling of copper, gold, molybdenum and silver; as well as the smelting and refining of copper concentrates.
The company conducts its operations primarily through its principal operating subsidiaries, PT Freeport Indonesia, Freeport-McMoRan Corporation (formerly Phelps Dodge) and Atlantic Copper. Its major competitors include Newmont Mining Corp. (NEM) and Southern Copper Corp. (SCCO). The company currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
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