Freeport halts production

JAKARTA (JP): PT Freeport Indonesia, a unit of Freeport McMoRan Copper & Gold Inc., has halted production at its giant Grasberg copper and gold mine in Irian Jaya due to a strike at the site, Antara reported yesterday.

The news agency said around 5,000 workers in Timika, Irian Jaya, had gone on strike demanding higher wages.

It said workers were disappointed at the fact that they had only received a wage increase of 10 percent after the company management in New Orleans, Louisiana, had promised them a 50- percent increase.

The strike is expected to grow when thousands of other workers from the company's contractors and subcontractors join.

An official from the provincial office of the Ministry of Manpower, Deksi Peranginangin, said the company's management in Timika had asked his office to mediate and a team had already been set up to do so. He said the team was expected to leave for Timika today.

Freeport McMoRan owns 81.28 percent of Freeport Indonesia. The Indonesian government owns 9.36 percent of the company, while the remaining 9.36 percent is held by PT Indocopper Investama Corp.

Grasberg is the world's largest single copper and gold mine.

On Monday, the military pulled out 270 combat troops from the remote town of Timika. (rid)