Freeport-McMoRan Copper & Gold Inc.
) has announced a force majeure on shipments from PT Freeport
Indonesia's (PT-FI) Grasberg mine in Papua, Indonesia, after an
accident occurred due to the collapse of a tunnel at the mine
that took 28 lives.
CLAUDE RSRCS (CGR): Free Stock Analysis
FREEPT MC COP-B (FCX): Free Stock Analysis
LAKE SHORE GOLD (LSG): Free Stock Analysis
NOVAGOLD RSRCS (NG): Free Stock Analysis
To read this article on Zacks.com click here.
While the accident occurred outside the area of mining
operations, Freeport temporarily suspended mining and processing
activities at the Grasberg complex as a part of the rescue and
Investigation is being carried on by PT-FI, international
experts, the Indonesian Department of Energy and Mineral
Resources (DEMR) and other government authorities. Freeport will
resume operations in phases, starting with open pit followed by a
ramp-up in underground operations after it receives approval by
Due to the closure of operations at the world's second largest
copper mine, production is expected to be affected. It is
apprehended that on a daily basis the mine would lose about 3
million pounds of copper and 3,000 ounces of gold. The Indonesian
operation lost about 80 million pounds of copper and 80,000
ounces of gold in the period between May 15 to June 11, 2013.
Freeport's Indonesian operation recorded copper sales of 198
million pounds in first-quarter 2013, higher than copper sales of
134 million pounds a year ago. Gold sales declined roughly 28%
year over year to 191,000 ounces due to lower ore grades from
Freeport currently holds a short-term Zacks Rank #3 (Hold).
Claude Resources, Inc.
Lake Shore Gold Corp.
NovaGold Resources Inc.
) also belong to the mining industry. All of them retain a Zacks
Rank #2 (Buy).