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Freeport Reaches Pact To End Grasberg Mine Strike In Indonesia

LONDON -(Dow Jones)- Freeport-McMoRan Copper & Gold Inc. (FCX) reached an agreement with union workers to end a weeklong strike over wages at its massive Grasberg mine in Indonesia. As of last Thursday, around 8,000 members of the 10,000-strong union at PT Freeport Indonesia had stopped working, disrupting operations at what the company says is the world's largest copper-and-gold mine by reserves. Eric Kinneberg, a Freeport spokesman, said, "An agreement has been reached with the PTFI union to end the strike, which began on July 4, 2011, and led to a suspension of mining and milling activities at the mine. "Under the agreement, negotiations for the upcoming collective labor agreement, scheduled for renewal in October 2011, will commence." He noted that workers will start to return to their jobs on Tuesday. Freeport in January forecast 2011 sales from Grasberg at 1 billion pounds of copper and 1.3 million troy ounces of gold, compared with 2010 sales of 1.2 billion pounds of copper and 1.8 million ounces of gold. -By Alex MacDonald and Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com --Deden Sudrajat in Jakarta contributed to this article.

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