Freeport-McMoRan Copper & Gold Inc.
) is expected to sign a new contract with workers of the Grasberg
mine in Papua, Indonesia, within a couple of weeks after it
reached a tentative agreement with them over wages, according to
As per the news agency, the deadline for an agreement between the
workers' union and Freeport was last Friday. Freeport reportedly
stated that it has plans to extend the talks by two more weeks
and may sign a deal by mid-October.
Freeport is negotiating with the workers for their wages,
benefits, rights, obligations and pensions. However the
negotiations were temporarily suspended in May after an accident
occurred at the Grasberg due to the collapse of a tunnel at the
mine that took 28 lives.
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
recovery operation. The closure of mining operations affected
production as the Indonesian operation lost about 125 million
pounds of copper and 125 thousand ounces of gold in the second
quarter of 2013. The mine is currently operating at 85% of
Freeport, which is among the prominent players in the mining
industry along with
Newmont Mining Corp.
Barrick Gold Corp.
), released its second-quarter 2013 results in July. The company
reported earnings of 49 cents per share, a roughly 34% decline
from the year ago earnings of 74 cents. But it beat the Zacks
Consensus Estimate of 41 cents. Profits slid 32% year over year
to $482 million, hurt by lower prices.
Revenues fell roughly 4.2% year over year to $4.29 billion in
the second quarter, missing the Zacks Consensus Estimate of $4.45
billion. Copper sales from Indonesian mining operations fell
around 14% year over year to 158 million pounds while production
declined roughly 20% to 139 million pounds in the quarter,
resulting from the accident at PT Freeport.
Freeport currently retains a short-term Zacks Rank #3
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