Freeport halts production

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)