Freeport Indonesia Says Force Majeure Ends on Grasberg Shipments
Shipments from Grasberg are at normal levels, Rozik B. Soetjipto, the president-director at the company’s local unit, said in a text message today. Phoenix-based Freeport has yet to formally announce the lifting of the force majeure declared on June 12, which allowed it to miss deliveries following a tunnel accident. Freeport resumed some concentrate shipments in July.
The end of the halt at Grasberg will add to global supplies at a time when prices are rising amid reports of stronger manufacturing and lower copper stockpiles in China, the world’s biggest consumer of the metal.
Copper for delivery in three months gained 1.6 percent to $7,211 a metric ton as of 12:29 p.m. on the London Metal Exchange. An official Chinese manufacturing gauge reached a 16-month high, and Bank of America Merrill Lynch said copper held in bonded warehouses in China plunged.
Indonesia ordered Freeport to suspend work at Grasberg after a tunnel collapse on May 14 killed 28 workers. The suspension reduced production by about 125 million pounds of copper and 125,000 ounces of gold in the second quarter, the company said in a statement on July 23.
The deposit at Grasbert, located in Papua province, normally produces 220,000 tons of ore a day, Soetjipto said in May.
To contact the editor responsible for this story: James Poole at firstname.lastname@example.org