Update 2: Grasberg?s output normal despite workers? protest: Freeport

(Rewritten throughout)

PT Freeport Indonesia (PTFI), the subsidiary of American mining giant Freeport McMoRan Copper & Gold, denied reports that it had suspended its Grasberg operation in Papua, saying production remained normal at the world?s second largest copper mine on Wednesday.

?Our operations are continuing. We remain at full production of concentrate and metal and concentrate shipping has not been affected,? PTFI?s spokesman Mindo Pangarabuan said.

Kompas Online and several residents in Timika earlier claimed that PTFI has suspended its Grasberg operation due to strike by its workers.

?According to information that we just received, that production activities have been brought to a standstill,? Frans Pigome, head of Tongoi Papua group, was quoted by Kompas Online as saying.

Pigome said Freeport?s production had significantly declined since Tuesday night as many workers refused to work.

Tongoi Papua, which represents native Papuans, is demanding the basic monthly salary of lowest-grade workers at the mine be raised to Rp 3.6 million ($396) from Rp 1.45 million.

?We remain hopeful that discussions between PTFI senior managers and Tongoi Papua leadership will lead to beneficial developments for our Papuan workers. The door to PTFI's senior management remains open to T-P leaders to present and discuss relevant issues,? Mindo said.

Meanwhile, Minister of Energy and Mineral Resources said that he had yet to receive information whether Freeport has stopped operation or the workers have launched strike.

He called on Freeport to negotiate with the workers on siness-to-business? basis, saying a long e will have an impact on Freeport?s production activities. (Godang)