ID :
213226
Fri, 10/28/2011 - 14:28
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GOVT CONTINUING EFFORTS TO HELP FREEPORT RESUME PRODUCTION

Jakarta, Oct 28 (ANTARA) - The government is continuing its efforts to make it possible for PT Freeport Indonesia to resume its production activities, Energy and Mineral Resources Deputy Minister Widjajono Partowidagdo said.

The government agencies concerned would give the company a security guarantee for the resumption of its mining operations in Papua, Widjajono said here on Friday.

"I also plan to go to Papua next week," he said.

He said he had just received a delegation of Freeport employees and local residents who complained about security conditions in Papua.

"They have asked for the restoration of normal security conditions in Papua," he said.

Widjajono said the government would focus on overcoming the security problem there to make the situation there conducive again like before.

He said the government would also help settle the dispute between Freeport management and employees on the latter`s welfare and improve their collective labor agreement.

He said the important things in the management-employees negotiations to resolve their dispute was transparancy and trust to arrive at mutually beneficial solution.

"Do not make exaggerated demands because doing so will not help solve the problem," he said.

PT Freeport Indonesia has declared a force majeure on concentrate shipment to buyers due to its production stoppage as a result of security problems.

The company produces between 220,000 and 230,000 tons of ore a day from the Grasberg open mining and its deep ore zone.

The ore from the mine is taken to a processing plant at Mile 74 in Mimika and processed into concentrates at an average rate of 6,000 to 7,000 tons per day.

The wet concentrate is then fed into a 114-km pipeline to a sea port where it is shipped to buyers after being dried.

Based on 2010 data one ton of ore contains eight kilograms of copper and 0.91 grams of gold.

PT Freeport employees had gone on strike to demand a pay raise and later a clash with security forces claimed an employee`s life.

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