Saturday, October 22, 2011
Strike at giant Freeport mine in Indonesia could impact global production
Mineweb.com warns that "the strike and unrest at Freeport's Grasberg operation in Indonesia could, if they continue and by virtue of the mine's size and output, have an important impact on global production of both copper and gold."
Phoenix-based Freeport McMoRan Copper & Gold is the dominant owner of the multi-billion dollar Grasberg project, which is "the world's second-largest copper mine, and holds more gold and copper reserves than any other mine in the world." [right, credit Freeport McMoRan Copper & Gold]
"Freeport-McMoRan managers, national staff, contractors and some union workers" are reported to be operating the Grasberg mine during the strike.
"Before the strike, Freeport Indonesia's copper output was forecast to be 1 billion pounds in 2011, from 1.2 billion last year. Gold sales are expected to hit 1.3 million ounces this year, versus 1.8 million ounces in 2010 and 2.5 million ounces in 2009."