The company has greed to reduce its stake in the Grasberg mine to 49% in exchange for licenses to operate the massive copper and gold pit until 2041.
Grasberg Mining News
Copper above $3.00 after former workers torch dozens of buildings, vehicles at Freeport's Indonesia operations blocking access to world number two mine.
Some issues still need to be resolved before the U.S. miner gets a new operating permit for its huge copper mine.
The indefinite labour action involves 56 unions, which are protesting a government’s proposed reform they see as "anti-workers".
The Indonesian unit is now in the process of obtaining a full export permit.
The news follows the end of a historically long 43-day strike at BHP Billiton’s Escondida, the world's biggest copper mine in neighbouring Chile.
Around 1,300 unionized miners plan to start an indefinite stoppage at Peru's largest copper mine beginning March 24.
Disputes at BHP Billiton’s Escondida mine in Chile, the world's biggest copper mine, and Freeport’s Grasberg and Cerro Verde mines, are also having a significant effect on global supplies of concentrate.
The mine produced just under 500,000 tonnes of the red metal last year, making it Peru's largest copper operation.
Top listed copper producer Freeport says negotiations with Indonesia going nowhere – will slash production at iconic mine by 60%.
The firm has not been able to ship copper from the mine in over a month due to a ban on concentrate exports that kicked in on January 12.
Miner says that each month of delay in obtaining approval to export means production would be reduced by 70 million pounds of copper and 70,000 ounces of gold.
Government is considering to extend the miner a temporary permit, valid for up to six months, which would pave the way for Freeport to resume exports from Grasberg.
Far-reaching new mining rules ease a controversial ban on exports of nickel ore and bauxite.
The company, which is the US biggest miner by market value, is cutting 25% of its workforce to reduce debt.
The measure is part of a wider revision of the 2009 mining law that led to Indonesia's export edicts and other regulations.
Maroef Sjamsuddin's decision comes less than a month after the chairman of the U.S. mining giant stepped down.
The company's co-founder James Moffett will step down as chairman and quit the board.
The U.S. miner became the latest mining company to announced drastic measures aimed at preserving cash amid a deepening commodity prices rout.
The investigation aims to determine whether senior officials tried extorting Freeport’s Indonesian unit in return for letting the company continue to operate in the country.
The U.S’s largest mining company unveils plans to further slash copper and molybdenum output.
The approval will include “the same rights and the same level of legal and fiscal certainty provided under its contract of work,” the company said without elaborating.
The miner has responded to deteriorating market conditions by slashing spending and cutting jobs, mostly at its North American operations.
The company, which runs the massive Grasberg mine in Papua, has stopped exporting since last month.
But China’s slowdown, rising costs and falling prices may get in the way.