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RTRS:Freeport Indonesia strike delays copper exports
 
* Ore shipments of 133,000 T delayed-sources
* Mine's daily ore output target is 230,000 T-govt
* Govt is losing $6.7 mln a day in revenues from strike

(Adds govt comments, details)
By Samuel Wanda and Olivia Rondonuwu
TIMIKA, Indonesia, Sept 16 (Reuters) - A strike involving
thousands of workers at Freeport McMoRan's Indonesian
copper mine and port has delayed around 133,000 tonnes of copper
ore concentrate shipments, industry officials said on Friday.
The strike, combined with recent supply
disruptions at Latin American mines, has raised concerns over a
global shortage of the metal, though so far this week copper
price gains have been dampened by worries about the global
economy.
Workers at Freeport's Amamapare port in Papua joined miners
on Thursday in a month-long strike over pay, stranding six
vessels awaiting copper ore cargo to be delivered to smelter
plants in Indonesia, China, the Philippines and Japan.

"Right now there is no activity and delays are expected with
the six vessels at the port," said Ricky Noviansyah, a port
captain for Wilhelmsen Ships Service.
Based on the mine's daily production target, the strike
potentially cut output of 230,000 tonnes of ore per day, said
energy ministry official Thamrin Sihite, after a meeting with
Freeport Indonesia's management on Friday.
Four Freeport supporting vessels, including two boats to
help load concentrate onto ships, as well as a tug boat and
another vessel for coal and fuel to supply power stations at
the mine, have halted operations and locked up, as the captains
and engineers joined the strike on Friday, a port worker told
Reuters by telephone.
Freeport has so far declined to comment on production.
Activity at Grasberg, the world's third-biggest copper mine,
has stopped as workers demand a larger slice of mining profits.
The huge mine, which also holds the world's largest gold
reserves, produces around 150,000 tonnes of copper ore a day,
according to the firm's website.
Copper prices rose 0.7 percent on Friday to $8,773 a
tonne, but has dropped about 9 percent so far this year.


LOSSES
Energy minister Darwin Zahedy Saleh said Indonesia is losing
$6.7 million from revenues due to the strike every day, with the
government looking to mediate talks between the firm and union.
The union, representing about 8,000 workers, has demanded a
pay rise to between $17.5 to $43 per hour, down from initial
demands for $30 to $200 per hour, but still above a current $1.5
to $3 per hour rate.
It has said that other Freeport workers worldwide get 10
times their current level.
A total 544,311 tonnes of copper was taken from the Grasberg
mine last year, around 3.8 percent of the world's output.
The Indonesian strike, if it lasts, is likely to be more
costly for Freeport than the eight-day work stoppage in July,
when the firm said it suffered a production loss of 35 million
pounds (15,876 tonnes) of copper and 60,000 ounces of gold.

The strike in Indonesia comes after workers in Freeport's
Peru copper mine Cerro Verde, which produces 2 percent of the
world's copper supply, launched an indefinite strike this week
for better pay and benefits.

(Reporting by Samuel Wanda, Olivia Rondonuwu in Jakarta, and
Randy Fabi in Singapore; Editing by Neil Chatterjee and Himani
Sarkar)

Source