Freeport McMoRan Copper & Gold Inc.s Indonesian
subsidiary has declared force majeure on concentrate
shipments from its Grasberg mine after an accident at the site
forced it to temporarily suspend operations.
"Because of the
temporary disruption, (PT Freeport Indonesia) has notified its
customers of a force majeure event under its
concentrate sales agreements," Freeport said June 12.
Grasberg is part of PT
Freeport Indonesia, a majority owned joint venture with the
Government of Indonesia.
percent of PT Freeport Indonesia
concentrates are sold to affiliated smelters Atlantic Copper
SA, located in Spain, and PT Smelting, located in
The balance of the
concentrate produced at the complex is sold primarily under
long-term sales agreements mostly to major smelting companies
Around three million
pounds of copper and 3,000 ounces of gold is being impacted per
day as a result of the collapse of a tunnel last month, which
killed 28 people and injured ten more (
amm.com, May 15). A truck driver was also killed
June 1 in a separate incident.
For the period between
May 15 and June 11, the estimated impact on production was
around 80 million pounds of copper and 80,000 ounces of gold,
the company said.
Freeport Indonesia is working with government
authorities on a phased restart of operations and will update
its production outlook as additional information becomes
available," the company said.
The disruption comes
at the same time that Rio Tinto Plcs Kennecott Utah
Copper subsidiary has declared force majeure on copper
cathode shipments (
amm.com, April 16) from its Bingham Canyon mine
following a wall slide in April.
Kennecott is buying concentrates and using stockpiled ore to
produce as much cathode as it can, while traders say Kennecott
is also seeking to buy metal to make up any shortfalls.