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."
Freeport pays these workers a horrible wage. I have read that some employees are receiving as little as a $1.50 an hour. From what I have gathered the Indonesian government is doing the negotiations. I can only assume they are doing th bidding for Freeport. There has been violence and the death of a few employees. Isn't this the richest deposit in the world? Freeport needs to settle this strike and pay these people a decent wage. Feeport can still make money when copper is under $1.25 and at the moment it is well over $3.
ReplyDeleteWhat is the average wage paid by other employers in that area? Is $1.50 per hour for "some employees" lower than the average? Please put your concerns in context for those of us who are not familiar with the Indonesian economy.
ReplyDeleteAnyone with a sense of right and wrong would know that $1.50 an hour is not right. I have a friend who lives in Indonesia whose family members buy $300 pocketbooks. Although Indonesia is a huge nation some of the country has some wealth while other parts are not as lucky. The question comes down to the fact that Freeport is making a fortune off of these miners and the work is back breaking in some cases. From what you have asked anonymous 2 one can assume that blood diamonds are okay because that part of the world has no work. Although blood diamonds were obtained by slave labor and horrendous conditions, the next time you look at your diamond or your wifes you should wonder who mined it. The fact is that no one reading these comments would ever want to go back to the time Americans were forced to work for poor wages and bad working conditions before labor unions came about. People have died in Indonesia-about 5 employees and a few guards. Freeport needs to loosen their belts and raise the wages to make life well above average. They don't mind giving the State of Arizona $1 million off and on. We all know that is to get legislation favorble to them. Of course, that is not said with the charity donation, but the legislatures know what Freeport wants.
ReplyDeleteAnonymous, you didn't answer my question. All I would like to know is whether the rate Freeport pays its miners is less than what other employers in the area pay. Are the miners being forced to work for low wages? Just the facts, please, if you know them. Otherwise, please spare us the rants about blood diamonds and labor unions.
ReplyDeleteAnonymous 7:48pm
ReplyDeleteShouldn't have to answer ur question if you know Freeport and isthere any other employers in that area. No the place is in the middle of no where. Freeport wants it all and pays there employes nothing. Also have no use for the union movement.