(Source: Business Wire)
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported today that PT
Freeport Indonesia (PT-FI) has reached terms with union officials to be
incorporated in a two year extension of its Collective Labor Agreement.
The labor strike, which commenced on September 15, 2011, has ended and
workers will begin reporting to their positions in the coming days.
Pursuant to the agreed terms, PT-FI agreed to increase base wages by 24
percent in the first year and by 13 percent in the second year
(equivalent to a 40 percent increase over two-years on a compounded
basis). In addition, PT-FI has agreed to provide improved benefits,
including enhancements to housing allowances, educational assistance and
retirement savings plans. For humanitarian purposes, PT-FI also agreed
to pay a one-time signing bonus equivalent to three months of base
wages. The parties also agreed that future wage negotiations would be
based on living costs and the competitiveness of wages within Indonesia.
As previously reported, milling operations have been suspended since
October 22, 2011, pending repairs to concentrate and fuel pipelines
damaged as a result of civil unrest which occurred during the course of
the strike. The repairs to the damaged pipelines are substantially
complete and PT-FI has begun to ramp-up milling operations. Shipments of
concentrate are expected to be limited until full operations are
restored, which is expected by early 2012.
James R. Moffett, Chairman of the Board and Richard C. Adkerson,
President and Chief Executive Officer said: "We are pleased that the
parties have reached a mutually satisfactory resolution on terms for a
new labor agreement. Our operating team is focused on resuming
normal operations in a safe, harmonious and efficient manner. We
appreciate the assistance and strong support of the Government of
Indonesia and look forward to a bright future for the Grasberg district
for the benefit of all stakeholders."
FCX also updated its estimates of fourth quarter 2011 consolidated sales
volumes, incorporating the estimated impacts from the disruption
resulting from damage to the concentrate pipeline. FCX estimates
consolidated sales for the fourth quarter of 2011 to approximate 800
million pounds of copper and 105,000 ounces of gold compared with the
October 19, 2011 estimate of 915 million pounds of copper and 305,000
ounces of gold. Actual fourth quarter sales are dependent on the timing
of shipping schedules in the balance of the year and are subject to
change depending on various factors.
FCX is a leading international mining company with headquarters in
Phoenix, Arizona.