By Saabira Chaudhuri
Freeport-McMoRan Copper & Gold Inc. (FCX) said the estimated daily impact of temporarily suspending its operations following a fatal roof collapse at its Indonesia underground training facility last month is about three million pounds of copper and 3,000 ounces of gold.
A tunnel collapsed at Freeport-McMoRan's giant Grasberg mine in Papua province May 14, killing 28 workers undergoing safety training. The other 10 in the training session were rescued.
The training facility is located near its largest underground mine, the Big Gossan, in Papua province. The company shut down operations at all its mines in Papua for safety checks.
For the period between May 15 and Tuesday, the company said the estimated impact on PT Freeport Indonesia's production was about 80 million pounds of copper and 80,000 ounces of gold.
"This was an unprecedented event in our more than 40-year history of operations in Papua," Chairman James R. Moffett and Chief Executive Richard C. Adkerson said. "We are taking all actions required to prevent future incidents and to assure the safety of our workforce."
The Grasberg minerals district in Indonesia is one of the world's largest copper and gold deposits.
Freeport-McMoRan said PT Freeport Indonesia has conducted safety inspections throughout its operations and is working with the Indonesian Department of Energy and Mineral Resources and other authorities to resume operations in a phased approach.
Because of the temporary disruption, PT Freeport Indonesia notified its customers of a force majeure event under its concentrate sales agreements.
Shares rose 1.2% to $29.68 in recent premarket trading. The stock has dropped 13% in the past 12 months.
Write to Saabira Chaudhuri at [email protected]