PHOENIX, AZ, December 14, 2011 - 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.
Freeport-McMoRan Copper and Gold Inc. Announces Successful Resolution of PT-FI Labor Issues and Updates Status of PT-FI Operations
- Category: Front Page News
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