The Freeport Mine Paralyzed In Total, 33,000 Workers Laid Off

News Portals: 19:55 WIB • PT Freeport Indonesia has suspended all production activities at the Grasberg copper and gold mine, Papua threatened to make 33,000 workers laid off.

JAKARTA, INDONESIA - PT Freeport Indonesia has suspended all production activities at the Grasberg copper and gold mine, Papua to make tens of thousands of laid-off workers are threatened.

Related to this, employers' associations mining giant companies from the United States (US), it plans to hold a demonstration against government measures to halt the export of concentrates to a subsidiary of Freeport-McMoRan these INC.

Reported by Reuters, prolonged cessation second largest copper mine in the world is believed to provide a substantial loss, when the copper price close to its highest level in 21 months this week. While it was previously Freeport said production of concentrates threatened drops to 40% if the government never gave permission to export their concentrates.

During this time production 40% Freeport send concentrates to the smelter in Gresik and exports 60% of production based on the applicable rules. However, since January 12, 2017, Freeport can no longer export concentrates. Processed mineral export permits some types, such as copper, iron ore and iron sands, which is owned by Freeport accordance with Government Regulation No. 1 of 2014 on the change of Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining, automatically void.

Export extension permits were gone as the government issued Government Regulation No. 1 in 2017 on changes in government regulation number 23 in 2010. With no export licenses, PT Freeport Indonesia could only be issued 40% of ore were produced to smelter in Gresik.

The rest, which should be exported, forced stockpiled in warehouses. Plus the storage conditions mentioned Grasberg mine has been filled.

Therefore, all activities at the Grasberg mine to a standstill at this time to make union workers plan to protest. "It really has been stopped altogether. Currently there is only maintenance activity (running)," said etua Unions Freeport, Virgo Solossa told Reuters.

The dismissal of 33,000 workers is said to also make Grasberg, Freeport is estimated to have been laid off. Planned on Friday (17/2) workers will hold a demonstration in land mines, demanding the government make "informed decisions" over the situation in Grasberg.

"If they're not careful, it will affect the (operational Freeport), both for the workers as direct beneficiaries and the general public as beneficiaries of the presence of Freeport," he said.

As is known, the government asked the company to divert COW held until 2021 into Special Mining Business License (IUPK). However, Freeport objected on the grounds IUPK system does not give a guarantee of long- term investment, where Freeport seeks to operate Grasber remain until 2041.