Freeport Resumes Grasberg Shipments One Month After Suspension
Stock Chart for Freeport-McMoRan Copper & Gold Inc (FCX)
Freeport-McMoRan Copper & Gold Inc. (FCX) resumed concentrate shipments from its Grasberg complex in Indonesia about a month after warning it may miss deliveries from the world’s second largest copper mine.
“We have resumed shipments but have yet to reach normal level,” Rozik B. Soetjipto, president director at unit PT Freeport Indonesia, said in mobile-phone text message yesterday. He didn’t provide details.
Freeport on June 12 declared force majeure on shipments from the mine in Papua province, a statement that allows it to miss deliveries because of circumstances beyond its control. Indonesia ordered the company to suspend work at the mine after a tunnel collapse on May 14 that killed 28 workers.
The resumption of sales may increase copper supplies and extend the 14 percent drop in prices this year. Copper for delivery in three months rose 0.3 percent to $6,848.25 a metric tons on the London Metal Exchange at 11:41 a.m. in Jakarta.
Phoenix, Arizona-based Freeport restarted Grasberg on June 22 after the government approved milling and open-pit operations, Daisy Primayanti, a spokeswoman, said June 24. The open pit has reached normal output, Freeport’s Soetjipto said on July 1.
Freeport’s Indonesian unit lost about 115 million pounds (52,000 metric tons) of copper and 115,000 ounces of gold between May 15 and June 21, the company said in a statement June 24. The underground stoppage has reduced output by about 1 million pounds and 1,000 ounces of gold a day, it said. The company needs clearance from the Energy and Mineral Resources Ministry to resume underground operations, Soetjipto said then.
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