Jakarta – Copper and gold mining firm PT Freeport Indonesia has been forced to halt production following a deteriorating security situation around its mining site in Grasberg, Papua.
"We have been forced to halt production due to security reasons," Freeport Indonesia open pit mine vice president Nurhadi Sabirin said Monday during a teleconference with journalists in Jakarta, as quoted by Antara state news wire. He added that the move affected mining activities in both Freeport's open pit and underground mines.
Nurhadi added that a pipeline, used to channel copper and gold concentrates to a port, had been cut in several places and could no longer be used, and that the production halt would be imposed until the security situation improved.
Freeport's Papua mines produce between 220,000 and 230,000 tons of ore per day. The ore is processed at a refinery in Mimika, into concentrates weighing between 6,000 and 7,000 tons.
The wet concentrate is then channeled through a 114-kilometer-long pipeline to the port, where it is dried before being sent to buyers. According to 2010 data, each ton of this ore contains 8 kilograms of copper and 0.91 grams of gold.
Freeport's productions have been disrupted recently due to strikes and protests launched by thousands of Freeport workers demanding for pay rise. One of the rallies turned violent last week, killing one protester and injuring several others in a clash between protesters and security officers.