Union workers at Freeport Indonesia Grasberg copper mine plan to extend a strike into a third month, which would make it the worst work stoppage in the history of the country’s mining industry.
Workers had been due to end a strike over pay on Nov. 15, but union officials said on Wednesday the dispute that has slashed production from the world’s second-biggest copper mine could now continue until Dec. 15.
The dispute at the mine, located in the remote Papua region, forced Freeport McMoRan Copper & Gold Inc to declare force majeure on concentrate shipments in late October and raised doubts it can meet fourth-quarter production and sales targets.
It was not clear if the union’s latest move represented a hardening of its position, or simply was part of a process that requires it to give notice to the local government to be able to strike legally.
“This is a safety net. If we fail to find a solution, we can extend the strike and be protected by the law. We have already informed all parties this on Nov. 2,” union official Virgo Solossa told Reuters.
“The strike will be automatically extended, that is the aim.”
The union said on Tuesday it would consider almost halving its pay demands if the firm agreed to an extra pay hike when workers are promoted, which appeared to be a step towards resolving one of Indonesia’s worst industrial disputes.
“The negotiations are still ongoing and we still have hopes that a fair agreement could be reached,” said Freeport Indonesia spokesman Ramdani Sirait, in response to the union’s strike extension plan.
A pay deal would end the strike by workers as well as their roadblocks to the mine’s supply routes, speeding up repairs of damaged pipes that transport concentrates to the firm’s port in the remote Papua region.
The disruptions forced the firm to declare force majeure on shipments on Oct. 26, supporting copper prices that had been under pressure by concerns over the world economy.
On Wednesday, three-month copper on the London Metal Exchange rose 1.5 percent by 0550 GMT, on data showing China’s inflation eased and after the Italian Prime Minister vowed to step down.
Freeport has started repairing the damage but has not been able to gain full access to the affected areas because of the roadblocks, the firm has said.
“The process to fix pipes is going to take more time. We need a security guarantee at several points to fix the pipes,” Sirait said.
As a result of low production and processing rates, the firm has suggested it might not achieve fourth-quarter production and sales targets.
Reuters