Ancora resumes explosive supply to Freeport

After being halted for several months due to workers? strike, PT Ancora Indonesia Resources Tbk has resumed the supply of ammonia nitrate (AN), an explosive used for mining operations, to Freeport Indonesia.

Ancora, through its subsidiary, PT Multi Nitrotama Kimia (MNK), stopped the explosive supply to Freeport in September after mining activities at the world?s copper and gold mining giant came to a halt due a widespread labor strike.

"We hope in December, we can resume the ammonia nitrate supply. Freeport has begun to request for the delivery of the explosives,? MNK?s finance director Rolaw Samosir.

Freeport and its Indonesian workers' union had agreed to soon sign a pay deal, ending a 3-month strike that has crippled production at the world's second biggest copper mine, union officials told Reuters on Tuesday.

The strike has been the highest profile stoppage among a slew of worker pay protests in Indonesia - signs of growing unrest over rising costs and a sense that the country's economic success is not being shared by all.

The two sides have agreed to a pay rise of 37 percent over two years to end Indonesia's longest-running industrial dispute, including a 24 percent rise in the first year, said Juli Parorrongan, spokesman of the Freeport Indonesia union told Reuters.

PT Ancora Indonesia Resources?s director Dharma Djojonegoro said the halt in the delivery had seriously affected MNK?s sales because Freeport was the company?s main buyer of ammonia nitrate.

In order to reduce dependence on single buyer, MNK planned to further diversify the sales to other companies, he said.

MNK?s total sales reached a total of 140,000 tons of ammonia nitrate at the end of the third quarter of this year. The company expects total sales will increase by 20 percent next year from about 170,000 and 175,000 tons this year. (giok)