- ANTARA/Spedy Paereng
The main pipe carrying copper from Freeport McMoRan's giant Grasberg mine in Indonesia to port has been cut, which will lead to a significant loss in production, the company's Indonesia unit said on Monday.
PT Freeport Indonesia said it is still evaluating the full impact of the pipeline cut on copper shipments from its strike-hit mine, adding that no Force majeure has been declared yet.
Workers said that operations at Grasberg, the world's second-biggest copper mine, have been stopped on Monday, but they did not clarify if this involves both copper and gold.
Road blockades as part of a two-month strike by around 12,000 of the mine's 23,000 workers have also stopped containers carrying food and medicine from reaching the mine and jet fuel from reaching the airport, the company and union sources said.
Three men were killed last week at the mine in Papua, though it was not clear if the shooting was linked to the pay dispute or to a simmering independence movement in the remote region.
Before that, a clash between striking workers and police near the mine killed one protester and injured others, complicating the dispute over pay and working conditions.
Copper prices have so far shrugged off the supply disruption because of worries a weakening global economy would hit demand for metals.
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Reuters