Reuters cited Mr Richard Adkerson president & CEO of Freeport McMoRan Copper & Gold as saying that he was concerned about violence around its vast mine in Indonesia but was confident the company could resolve issues with the Jakarta government over moves to limit foreign miners' operations and profits.

Mr Richard Adkerson said that he just returned from talks with the government in Indonesia where the US company operates the huge Grasberg mine. We are concerned about what is going on in Indonesia. Number one is the security element. There have been acts of violence and that is my biggest concern.

He said that also we had a new situation with our workforce last year referring to a three month strike that affected Grasberg production denting 2011 and Q1 2012 earnings and prompting the company to declare force majeure under which it cannot be held to contractual obligations. As companies become more profitable, demands from workers increase.

During the strike, the mine on Papua Island was blockaded, a major pipeline to a port was sabotaged and violent clashes erupted between police, protesters and militants seeking Papuan independence from Indonesia.

Mr Adkerson said that Freeport, which has operated Grasberg since the 1970s, was confident about its contract. It has the right to work there until 2021 with the option for two 10 year extensions. Although voices in Indonesia are calling for more royalties, taxes and divestiture, among other things we are dealing with those issues in discussions with the government.

Source - Reuters

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