Freeport McMoRan Copper and Gold is ramping up production at its Indonesian unit, a company spokeswoman said, six weeks after a deadly tunnel collapse at the world’s No. 2 copper mine halted operations.
The resumption of open-pit operations at the massive Grasberg complex came earlier than expected, taking many copper traders by surprise - though underground work remains halted awaiting further inspections and approvals from authorities.
The Arizona-based company did not provide an update on its outlook for the year, but said the 38-day closure had affected about 52,000 tonnes of copper production, or about 10 per cent of its total forecast sales this year.
Shares were down 5.6 per cent at $26.57 at midday on Monday, in line with a broader slump among miners as copper fell to a near three-year low on a firmer dollar and worries about slowing demand from top consumer China.
Freeport stopped production at Grasberg in remote West Papua on May 15, a day after a training area in a tunnel caved in, killing 28 people.
On Saturday, the company said it had slowly resumed open-pit mining after receiving approval from the Indonesian government, although underground production remained closed.
