Jakarta - Mining companies from the United States (U.S.), Freeport-McMoRan announced force majeure conditions for the shipment of products from the mining of gold and copper mine in Indonesia.
A spokesman for Freeport Indonesia, Ramdani Sirait said the strike action by PT Freeport Indonesia Workers Union have an impact on production and shipments of concentrate. It has been working cooperatively with our buyers based on changes in production schedules and shipment of concentrate to Freeport.
"The production of concentrates is lower impact on our performance capabilities to meet our sales commitments are optimal, and consequently we are forced to declare 'force majeure' to concentrate sales agreements are affected," said the detikFinance, Wednesday (26/10/2011).
The announcement means the condition of force majeure that Freeport can avoid penalties for failing to meet obligations usually under the contract.
About 8,000 of the total 23,000 Freeport workers have been on strike for more work than 1 month in the mines located in Papua. They demanded higher wages and better working conditions.
Freeport gold and copper production from the Grasberg mine in Papua has decreased during the third quarter of 2011. Production of copper in Papua during the third quarter of 2011 reached 233 million pounds. Down 34% over the same period di2010 which reached 358 million pounds
