The Grasberg mine in Indonesia is producing copper, gold and silver ore at 5 percent of its full capacity, the mine owned by Freeport McMoRan Copper & Gold's is the largest Copper and Gold Mine in the world. Shayne Heffernan of HCM is predicting a solid rally in Copper and Gld in to 2012.
The company said it could take a month to fix its main sabotage-hit pipeline to take concentrate from the world's second-biggest copper mine to its port, where there are no stockpiles left for shipping.
Around 8,000 of Freeport Indonesia's 23,000 workers have been on strike for more than a month in restive Papua province, demanding drastic wage increases and better working conditions.
Freeport said the labour action and resulting drop in production at its Grasberg mine has taken a toll on its ability to make good on some promised shipments to customers.
The declaration means Freeport can avoid the usual liabilities for failing to meet its contractual obligations.
Freeport-McMoRan Copper & Gold Inc. (FCX)'s striking Peruvian miners refused to accept private arbitration to end a 35-day stoppage, a union official said.
Workers at Sociedad Minera Cerro Verde SAA (CVERDEC1) copper mine, on strike since Sept. 29, declined Cerro Verde's request for arbitration and will study a petition to renew wage talks, union official William Camacho said today.
Arbitration would be a violation of our right to strike, and no one can force us to accept it, Camacho said in a telephone interview from a telephone interview from Arequipa, 750 kilometers (466 miles) southeast of Lima. The solution is in the government's hands. Until then, the strike goes on.
Workers in Peru, Chile, Bolivia and Indonesia have downed tools at copper, gold and zinc mines this year to seek better working conditions and a bigger share of record profits after metal prices surged. Workers at Freeport's Grasberg mine in Indonesia have been on strike since Sept. 15 and are set to resume labor talks Nov. 7.
Workers in Peru are seeking a 9 percent annual wage rise, while Cerro Verde is offering a one-time bonus of 1,200 soles ($433), according to the union.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services. www.livetradingnews.com