Jakarta – A wildcat strike by some 5,000 workers at one of the world's largest copper and gold mines, PT Freeport Indonesia, dragged into its fourth day Thursday with no sign of a breathrough, the company said. "We're hopeful, but there's no breakthrough yet," a Freeport spokeswoman in Jakarta told AFP, adding that negotiations were continuing.

Freeport also issued a statement saying it was concerned over the strike in the remote province of Irian Jaya, which is costing the company some 6,500 tonnes of copper concentrate production daily. The statement sought to "clarify rumors" that Freeport's US parent company had promised the striking workers a 50 percent pay raise, then demnaded that they settle for 10 percent increase.

"Freeport McMoRan (Copper and Gold), management in New Orleans, Louisiana, USA, never made a promise of a 50 percent pay increase for the workers," the statement said. It added that the striking workers, who are asking for a 100 percent pay hike, had received a 40 percent salary increase in increments since the economic crisis hit the country last year.

Local news reports here have quoted the striking workers as saying the 50 percent was promised, but that only 10 percent was awarded. The company statement said the some 13,000 workers employed in Irian Jaya by Freeport had been also been awarded special bonuses since October 1997.

It did not mention the salary levels of some 3,000 workers for subcontractors in the area, some of whom are involved in the walkout. Freeport said it was continuing negotiations with the help of central and provincial government officials and union represenatives at the Grasberg site of the giant copper mine, which also has the world's second largest reserves of gold.

On Wednesday the parent company said there had been no violence or property damage in Grasberg, but that it had been forced to suspend all mining and milling operations. It denied that the port was affected, saying "shipments of concentrates are being made from the inventory."

[On August 14 Dow Jones Newswires reported that the workers had agreed to return to work. According to AFX-Asia, workers have also gone on strike at the Grasberg copper mine, which produces 700,000 tonnes of concentrate a year. No other details were reported - James Balowski.]