Freeport resumes copper shipments from Grasberg

Freeport-McMoRan Copper & Gold's Indonesian unit had resumed concentrate shipments to its copper smelter after a three-month strike ended in December last year, indicating that the world's second largest copper mine is indeed on its track returning to normal operation.

Dwi Bagus, an assistant manager at the smelter, was quoted by Reuters as saying on Wednesday that Copper smelter PT Smelting, partly owned by Freeport, was again receiving copper concentrate from the mine.

Bagus declined to say when shipments restarted or the quantity of concentrate the smelter had received, but a source at Amamapare port in Papua province said Freeport Indonesia shipped 27,000 tons of concentrate to PT Smelting in December last year.

The source at the port, which is located near the Grasberg mine, also said cargo vessels containing 26,590 tons of Freeport copper concentrate left for east Java on Wednesday.

Officials in Freeport Indonesia were not immediately available for comment.

According to its website, Freeport Indonesia's copper concentrates are sold under long-term contracts, with approximately half the amount sold to affiliated smelters Atlantic Copper and PT Smelting.

Arizona-based Freeport has had a force majeure status in place on concentrate exports from Grasberg since October as workers went on strike for better pay. The mine has the world's largest gold reserves and also produces silver, .

According to analysts estimates losses due to the strike amounted to 100,000 tons of copper concentrate, and the stoppage triggered a spate of similar strikes in Southeast Asia's biggest economy.

Earlier this month, Freeport Indonesia said it continued to ramp up production at Grasberg.

Benchmark three-month copper on the London Metal Exchange traded little changed at $8,237.25 a tonne by 1024 GMT, versus $8,200 at the close on Tuesday. (*)