Please enable JS and disable any ad blocker Dealing in metal from Papua could break UK law because of environmental impact of mining it Campaigners have warned the world’s largest metals market, the London Metal Exchange (LME) that it could be breaking the law by allowing the trading of copper from one of the world’s most controversial mines The way the metal is produced at the Grasberg mine in the highlands of Papua, Indonesia is so environmentally destructive it would be illegal almost anywhere else in the world Yet products containing copper from the Grasberg mine such as cathodes are sold every day on the London exchange which describes itself as “the world’s centre for industrial metals trading” and from there they go into the supply chains crisscrossing the globe Situated in the western highlands of the island of New Guinea in the midst of the world’s third-largest remaining rainforest the Grasberg mineral district is one of the world’s most important sources of copper and gold But since its development in the late 1960s, the mine has been allowed to use a so-called “riverine tailings management system”, through which it disposes of an estimated 200,000 tonnes of mining waste a day directly into the headwaters of the Ajkwa river delta Ore from the mine is ground down to the consistency of fine sand and mixed with water to produce a slurry treated with chemicals that make the gold copper and silver minerals within rise to the top After the commercial minerals are skimmed off the remaining finely ground rock particles – known as tailings – are dumped into a river next to the site from where they flow downstream into the Ajkwa delta flood plain says it has “designed and constructed a system of levees to manage the deposition of what will ultimately be about 3bn tonnes of tailings” by the end of the mine’s life People indigenous to Papua claim their communities have been racked with poverty oppression and environmental degradation since the mine began operations in 1973 An analysis of the mine’s tailings waste published in 2020 found it contained contaminants including arsenic and a 2016 study in Nature found that the sheer volume of the waste was leading to “forest inundation and degradation of water bodies critical to Indigenous peoples” One tribal chief from the area said in 2016 that tailing sediment from the mine had raised the riverbed by his village oysters and shrimp on which his people’s diet and economy are traditionally based PTFI told the Guardian that managing the tailings process safely and effectively was one of their top environmental priorities “The tailings management system from the Grasberg mine has complied with the AMDAL (Environmental Impact Assessment) and it has been operating for almost 30 years We continue to demonstrate through external reviews that the system is the most environmentally sound approach for tailings management at Grasberg “We are committed to responsible production integrating leading international environmental standards and technologies at all our operations On Monday, campaigners from the London Mining Network (LMN) and the Global Legal Action Network (GLAN) wrote to the LME and its regulator to warn that trading copper produced at Grasberg could amount to money laundering They say that disposing of the mining waste in this way would constitute a serious offence if it took place in the UK and so copper produced at the mine could be considered to be “criminal property” under the Proceeds of Crime Act (POCA) “The London Metal Exchange is the world centre for metals and critical minerals trading,” said Stéphanie Caligara “As humanity’s reliance on metals like copper intensifies in the pursuit of the ‘green transition’ the exchange has a legal duty to ensure that the metals traded on its exchange are not produced on the backs of environmental crimes “It also has a critical role in safeguarding the integrity of global supply chains the FCA must investigate any suspicion of laundering of proceeds of crime trading on the exchange.” the campaigners tell LME that it is obliged to inform the National Crime Agency of any suspected money laundering taking place on its exchange Last year they attempted to judicially review the trade in Grasberg copper on the platform but a judge told them they must raise a complaint directly with the LME and the FCA before that kind of legal action could be taken Caligara said: “GLAN has identified similar patterns with mining corporations operating in Brazil Guinea and the Russian Federation to name only a few and trading their products on the London Metal Exchange GLAN and LMN’s action might force these companies to revisit too the way they produce metals in these countries This in turn could lead to reduced environmental harm linked to mining and drastic improvement of the livelihood of communities affected by these operations.” According to its website the LME says that since the beginning of 2024 any products listed on its exchange must comply with responsible sourcing requirements outlined by the Organisation for Economic Co-operation and Development and the International Organization for Standardization It is understood that even if the exchange had raised concerns over the production of any product it lists it would not be able to make those concerns public A spokesperson for the exchange said: “The LME takes its regulatory obligations seriously and has appropriate measures in place to comply with such obligations PTFI did not respond to a request for comment with the Grasberg copper mine pit in the foreground The summit of Puncak Jaya is at the far end of the central rib which prefers the sign to the thing signified Sacredness is in fact held to be enhanced in proportion as truth decreases and illusion increases Denver -- Freeport-McMoRan Copper & Gold (FCX-N) has returned the Grasberg mine in Indonesia to capacity.Throughput at the giant copper-gold complex had been limited to 200,000 tonnes per day in the wake of an accident that.. 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To learn more, click more information Accept Close Free NewsletterUK Join the newsletter that everyone in finance secretly reads Freeport McMoRan is set to resume Indonesian copper exports thanks to a new license allowing shipments from its massive Grasberg mine Freeport McMoRan's return to export comes after their license lapsed in December This shift is essential post-fire damage at their Manyar smelter compelling the company to find new ways to satisfy global demand Although Indonesia's policies encourage local mineral processing backing Freeport's exports shows a flexible approach to balancing domestic goals with global market requirements The initial shipments to China are due by late February promising to alleviate the copper concentrate shortage have dropped to an unprecedented negative $12.5 per ton For markets: Copper flows to calm the storm The restart of Freeport McMoRan's copper exports should stabilize global supply chains especially aiding smelters impacted by limited concentrate availability This move is expected to influence pricing and alleviate treatment charge levels making it a key focus for stakeholders in the copper and broader metals market The bigger picture: Global demand meets local policy Indonesia's decision to extend an export license to Freeport McMoRan highlights the intricate balance between national resource management and international economic demands impacting not just copper but many commodities crucial to infrastructure and technology sectors worldwide Theodora Lee Joseph, CFA The Great Wealth Transfer Is Coming – Here’s How To Profit From It Stéphane Renevier, CFA Markets Could Pick A Direction This Week – Here's Why Jonathan Hobbs, CFA Why GameStop Might Actually Be Worth A Look Right Now Theodora Lee Joseph, CFA Political Risk Is Part Of A Stock’s Value Now – And, No, You Can’t Afford To Tune It Out Theodora Lee Joseph, CFA Apple And Amazon’s Results Were Sturdy, But Their Future Looks A Little Less SoREAD NEXTNews Skechers Goes Private In $9.4 Billion Deal With 3G Capital Finimize Newsroom Edgewell Braces For 2025 Challenges As Tariffs Bite Finimize Newsroom A Defensive Portfolio Prepared For The Wealth Effect’s Reversal Stéphane Renevier, CFA One Common Hedge-Fund Trade Could Bring Down Financial Systems – And It Nearly Backfired This Week Russell Burns Coinbase’s Steep Drop Might Make It Interesting, But It Hasn’t Made It Cheap Russell Burns Tariffs Are Spooking Investors Into Panic-Selling – Here’s What to Do Instead Reda Farran, CFA Threats Are Rising. So Here’s How To Invest In Cybersecurity.Theodora Lee Joseph, CFA Apple And Amazon’s Results Were Sturdy, But Their Future Looks A Little Less So Theodora Lee Joseph, CFA Disclaimer: These articles are provided for information purposes only an opinion about whether to buy or sell a specific investment may be provided The content is not intended to be a personal recommendation to buy or sell any financial instrument or product or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience your financial situation or your investment objectives You may not get back all the money that you invest The investments referred to in this article may not be suitable for all investors an investor should seek advice from a qualified investment advisor This article may contain AI-edited content While efforts have been made to ensure accuracy AI may not capture the nuances of the subject matter resulting in errors or inconsistencies The Indonesian government has agreed to allow copper miner PT Freeport Indonesia to resume exports of copper concentrate until repairs at its smelter are completed Energy and Mineral Resources Minister told reporters on Friday The government had previously given Freeport an exemption until the end of 2024 from its ban on exports of copper concentrate as the company was ramping up production at its new Manyar smelter Minister Bahlil Lahadalia said the government had decided to allow exports by Freeport but would impose export duties on the shipments as a penalty He said the government was currently calculating the export volume it would allocate to Freeport Freeport Indonesia could not immediately be reached for comment (By Bernadette Christina Munthe and Fransiska Nangoy; Editing by John Mair) and website in this browser for the next time I comment Δdocument.getElementById( "ak_js_1" ).setAttribute( "value" Gruyere gold mine joint venture partners Gold Fields and Gold Road Resources reach agreement on a friendly deal to consolidate ownership. The initiative will be delivered through the regional joint venture established by Fleet Space Technologies and Tahreez. The US central bank is widely expected to hold rates steady in this meeting. Romania has major reserves of rare earths, gold and copper, which have attracted interest from Canadian and American firms. 2024 results show higher prices helped profit margin developed by Freeport-McMoRan | Credits: Freeport McMoran Freeport-McMoRan has requested approval from the Indonesian government to permit the export of copper concentrate in 2025 "until the required repairs of its new smelter following the October 2024 fire incident and full ramp-up are complete." Current regulations in Indonesia prohibit exports of copper concentrate as of January 1 Freeport-McMoRan's fire-hit giant Manyar copper smelter in East Java, Indonesia is reportedly expected to remain offline until the July-September quarter of this year and spend the following six months in ramp-up mode before returning to normal operation The copper smelter – among the world's largest with an output capacity of 650,000t of copper cathodes and 50-60t of gold – was launched in June 2024 and was intended to reach full capacity before the end of 2024. Then came the fire on October 14 It occurred in a gas cleaning facility designed to remove particles from gases before conversion to sulphuric acid. Based on discussions with the Indonesian government to date that it expects to recommence exports of copper concentrate during the first quarter of 2025 and would be required to pay a 7.5% export duty on copper concentrate exports during 2025 Freeport's fourth-quarter profit was helped by higher copper prices the company said in its fourth-quarter results Operating income for the fourth quarter was at $1.24 billion down marginally on a year-on-year basis (Q4 2023: 1.09Blb) and 4.214Blb for the year (2023: 2.212Blb) totalling $1.56/lb in 2024 (2023: $1.61/lb) the net cash per pound for copper produced in Q4 2024 was higher than in Q4 2023 the company posted output of 432,000oz in Q4 2024 and sales of 350,000oz at an average realised price of $2,628/oz Freeport-McMoRan saw an output of 1.88Moz (down from 1.99Moz in 2023) but higher year-on-year sales of 1.83Moz (2023: 1.71Moz) Fourth-quarter 2024 copper sales of 992Mlb were slightly above the October 2024 estimate fourth-quarter 2024 copper sales were lower than fourth-quarter 2023 sales of 1.1Blb primarily reflecting lower ore grades and the timing of shipments at PT-FI" (the company's Indonesia smelter) Consolidated sales volumes for the year 2025 are expected to approximate 4Blb of copper Freeport-McMoRan is forecasting output of 850Mlb copper Consolidated unit net cash costs (net of by-product credits) for the company's copper mines are expected to average $1.60/lb copper for the year 2025 and cost estimates and assuming average prices of $2,700/oz gold and $20/lb of molybdenum for the year 2025 Freeport-McMoRan said that it is preparing data for a potential submission of an environmental impact statement by year-end 2025 on its El Abra operations in Chile to support a mill project similar to the one at Cerro Verde indicate that the project economics would be supported using an incentive copper price of less than $4.00/lb," Freeport said Teck grows 2024 copper output by 50% on QB ramp-up Vale considers sale of Thompson nickel assets each focused on a key discussion point for the mining sector brought to you by the Mining Journal Intelligence team priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025 A detailed analysis of mining investment risks across 117 jurisdictions globally assessed across six risk categories and an industrywide survey The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies it assesses each company across 9 meticulously weighted indicators within 6 essential pillars Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey Aspermont Media is a company registered in England and Wales Block cave mining is the intended mining method for a number of significant copper projects under development CRU expects block cave projects to account for over a fifth of the growth in potential copper supply by 2025 Past block caving projects have encountered a range of challenges which have typically led to delayed ramp-up and higher costs The current crop of caving projects should benefit from these learnings as they are being developed by the same majors each with decades of block caving experience Block caving also has less flexibility to respond to any issues that may arise compared with conventional mining methods While PT-FI has over three decades of block caving experience at Grasberg the risk now is the scale: Grasberg is almost 100% reliant on block caves Codelco’s Chuquicamata plans to use macroblocks up to seven times larger in area than conventional blocks The Oyu Tolgoi block cave (company start up guidance revised (16 July 2019) to between May 2022 and June 2023) will be more than 50% larger than any other block cave Rio Tinto has previously operated and it is in a relatively weak and heavily faulted rock mass the Resolution block cave will be the deepest block cave in the world at around 2km and one of the hottest mines at 76° to 82° Celsius Depletion of near surface orebodies sparks interest in underground cave mining methods Block caving is an underground mining technique that allows for the bulk extraction of large relatively lower grade ore deposits with substantial vertical dimension The technique involves undercutting a large section of ore by drilling and blasting which then intentionally starts to collapse under gravity The broken ore falls into a series of pre-constructed funnels The ore is then removed from access tunnels underneath the caving rock mass The interest in cave mining is being fuelled by the depletion of near surface orebodies relatively high production rates and low operating costs open pits often have a continuation of the orebody below their economic depth the extraction of which would not be economic using conventional underground mining methods While the capital cost for block caving is significant – typically over US$5 bn for current large-scale block caves – operating costs are significantly lower than for traditional underground mining methods are a fraction of the cost of other underground mining methods largely driven by high production rates that for some of the new “supercave” projects are expected to reach 100,000 tonnes of ore per day The lower operating cost of underground block cave mining can be comparable with higher cost open pit operations and can either be a viable alternative to develop a new mine or to extend the life of an existing mine Cave mines can have a significantly smaller footprint than a comparable open-pit since waste mined is only limited to underground infrastructure development The minimal amount of waste is also a key permitting advantage Other benefits include limited use of explosives to fragment the ore and reduced greenhouse emissions through minimising ore re-handling Block cave mines are also very suitable for highly automated equipment like remote control loaders The caving industry is now moving toward the next generation of caving geometries and scenarios where current practice and knowledge is likely to be tested A shift is underway towards block caves at greater depths over small footprints and in competent rock-mass environments Operators are planning higher cave columns in order to maximise profitability These operating environments are likely to be less predictable and present new challenges Block caving has been used for over a century having first been applied at iron and copper mines in the US in the late 19th and early 20th centuries it is only within the past 20 years that this method has spread more widely There are currently approximately 18 cave mining operations in 11 countries there are at least another 20 cave mining projects globally in various stages of studies and development The key players involved in the major block cave copper projects each have decades of experience in block caving Rio Tinto has owned and operated block caves at Northparkes (copper-gold) the experience and lessons from which will be applied in the development of its Oyu Tolgoi PT-FI has operated block caves at Grasberg since 1980 the owner of the El Teniente NML and Chuquicamata projects has operated block caves at El Teniente in Chile for decades block caving is often used as a replacement mining method at an earlier open pit that has reached its economic limit Examples include the Palabora copper-gold mine in South Africa and the forthcoming transitions at large copper-gold mines such as Grasberg in Indonesia and Chuquicamata in Chile Caving methods can be used with any type of commodity since it is the geological and geotechnical context that is important Most cave mines involve copper or diamonds reflecting the method’s suitability for working porphyry and pipe-type deposits Block caving is the intended mining method for several significant copper projects under development The five largest projects that have either commenced production this year or are forecast to commission over the outlook will all use block cave mining These are Grasberg Block Cave (GBC) which commenced in Q1 Grasberg Deep Mill Level Zone (DMLZ) – a restart Other candidates include Rio Tinto’s Bingham Canyon where a sequence of caving operations has been under evaluation for several years and Rio Tinto and BHP’s Resolution Copper project in Arizona block caves are expected to account for over a fifth of the growth in potential copper supply by 2025 increasing from 4% of current global mined copper production to around 10% of unadjusted copper mine supply by 2025 Copper market deficits likely if block caves fall short Our base case estimates for the global refined copper market balance are for a largely balanced market over the next three years before turning to deficit from 2023 onwards Our forecasts factor in relatively conservative expectations for copper block cave project production start timing and ramp-up if they experience any further delays or a slower than anticipated ramp-up of production the copper market could shift to deficits sooner than we currently anticipate CRU’s Copper services include market analysis and forecasts all based on robust methodologies for a complete view of the copper value chain and related commodities Our team is available to answer your questions. You may also request a sample or demo to learn how CRU's services can add value to your business. If you would like to speak to us or request further details about analysis and prices services, please email our team Register to continue reading and gain access to all CRU articles CRU's unique services are the product of both our in-depth understanding of the markets and close contact with our customers High hopes that the world’s biggest gold mine will finally bring meaningful benefit to the community for which it has for decades been a source of contention have been deflated as negotiations hit a wall (FCX) and the Indonesian government are currently hashing out the details of a long-term agreement for an extension of the company’s contract to operate the giant Grasberg gold and copper mine in Papua province Freeport announced in August that it had agreed to divest a 51 percent stake in its Indonesian subsidiary in which it currently holds a 90.64 percent stake following sustained pressure by the government to reform a mining sector long seen as not doing enough to benefit local communities or contribute to the national economy As part of broader changes to Indonesia’s mining law the government has required that all mining firms build smelters in-country; convert their existing contracts into more flexible permits; and for those with a foreign majority shareholder divest a 51 percent stake in their operations to local partners within a decade of the mines coming into production Freeport’s announcement was cheered by Indonesians many of whom believe the country has been getting the short end of the stick in its business dealings with foreign miners hoping the redrawn contract would finally address the impact of the company’s mining operations on the local community and improve their welfare But as negotiations between Freeport and the government stall over the terms of the divestment the role Papuans will play in determining the future of the mining project is once again shrouded in uncertainty In 2016 alone, Freeport’s Indonesian operations generated $3.8 billion in revenue for the parent company. Yet despite having the world’s most profitable gold mine, Papua remains Indonesia’s poorest province, where 28 percent of the people live below the poverty line It also has some of the worst infant mortality and literacy rates in Asia To ensure that some of the mine’s revenues trickle down to Papuans Energy and Mineral Resources Minister Ignasius Jonan has said that up to 10 percent of PTFI’s shares should be reserved for the Papuan government and indigenous Papuan people But Freeport has balked at the details of the government’s plan to manage the divestment the company expressed strong disagreement with the valuation timing and structure put forward by the government The government has proposed acquiring a majority stake in PTFI by the end of 2018 but Freeport wants the divestment to take place in stages over a period of several years It also wants the first batch of shares to be offered publicly through the stock exchange rather than allocated directly to the government The price is another sticking point. Last year Freeport offered to divest a 10.64 percent stake in PTFI for $1.7 billion which would give a valuation of around $8.1 billion for a 51 percent stake Conflating FCX’s market capitalization on the New York Stock Exchange and its share of revenue from PTFI the minister argues that the fair value for a 51 percent stake in the Indonesian operator should be $4 billion Any hopes for immediate benefits as a result of the divestment particularly the promised 10 percent stake for Papuans have diminished as a result of the impasse the national coordinator of mining sector watchdog Publish What You Pay Indonesia said such disagreements should have been foreseen “The contentions in the negotiation process were predictable So any claims of victory after the divestment agreement [in August] were premature given that there are still many details that haven’t been agreed upon,” she told Mongabay there’s a high chance that things could still change.” Community leaders in Papua argue they should be involved in the ongoing negotiations regardless of whether Papuans get a share in PTFI A group representing various indigenous tribes affected by PTFI’s mining operation met with Jonan last month to discuss the issue “We hope we will be involved in the negotiation of the details of the agreement and that a good deal will be given be to the local people,” said Odizeus Beanal whose highland home is where Grasberg is located “Our hope in the future is for an agreement to be reached for indigenous people.” They have been further displaced and marginalized by migrants from elsewhere across Indonesia drawn to the mining boomtown Indonesia’s National Commission on Human Rights (Komnas HAM), a state-funded body, said earlier this year that PTFI had never compensated the Amungme and the Kamoro as the original stewards of the land where it operates It characterized Freeport’s concession as a land grab “The land that could be used to live on has been contaminated with chemicals,” Daniel Beanal, a Kamoro elder, told presidential staffers at a meeting earlier this year I’ve never received anything from Freeport.” Beanal argued it would be best for PTFI to cease operations “Our aspiration is clear: to close and audit [PTFI] first. We’re not asking for a share, not even a single percent. Close the operation first, and then audit [them],” Kanunggok said A recent report by Indonesia’s Supreme Audit Agency (BPK) identified a wide range of irregularities in PTFI’s operations and its current contract Eleven of the issues were attributed to weak management by the government while 10 pointed to violations of regulations by PTFI These include indications of reckless mining and the dumping of mining waste into rivers An earlier review by the agency estimated the environmental damage from the company’s operations at 185 trillion rupiah ($13.7 billion) PTFI spokesman Riza Pratama said the company manages its waste in accordance with the terms set out in the Environmental Impact Assessment (EIA) approved by the government in 1997 “We are operating in accordance with our mining contract and [mining waste processing and disposal] has been regulated in it,” he told Mongabay if PTFI refuses to make amends for the environmental damage it has caused The BPK also found that Freeport had used 4,536 hectares (11,208 acres) of protected forest area without obtaining the proper permits costing the government $20 million in lost fees between 2008 and 2015 Riza declined to comment on this finding when asked by Mongabay there is no guarantee of more environmentally sound mining operations once Freeport has relinquished a 51 percent stake in PTFI That’s because Freeport has insisted on retaining operational control of its subsidiary until 2041 even if the government holds the majority of PTFI shares Indonesia would have no leverage in the deal according to PWYP Indonesia advocacy manager Aryanto Nugroho Freeport could refuse to pay dividends to the government by saying it needs the money to cover expenses like building a smelter which it is required to do under the new mining law “Even if the government held the majority of shares So there are traps like that,” Nugroho told Mongabay The government must ensure that Freeport pays all its obligations executive director of the Indonesian Center for Environmental Law (ICEL) “If the obligations are paid before the takeover But if the obligations [are held over until] after the takeover then who would bear the burden?” Subagiyo told Mongabay “If the government has the majority of shares then the government would have the obligations [to pay for the damage] Activists have urged the government to use the BPK’s findings as a basis in the negotiations with Freeport “These problems have to be probed further and discussed during the renegotiation process of Freeport’s mining contract,” said PWYP Indonesia’s Abdullah “Environmental problems are no less important than other problems in the renegotiation divestment and the obligation to build smelters in Indonesia.” President Joko Widodo has said the government is seeking a win-win solution as quickly as possible But with neither side seeing eye to eye on the key issues it remains unclear when the negotiations will conclude Banner image: Panorama from high up at the Grasberg gold and copper mine in Indonesian Papua on the island of New Guinea The “fortress conservation” model is under pressure in East Africa as protected areas become battlegrounds over history and global efforts to halt biodiversity loss Mongabay’s Special Issue goes beyond the region’s world-renowned safaris to examine how rural communities and governments are reckoning with conservation’s colonial origins and trying to forge a path forward […] Copper concentrate exports from Freeport-McMoRan’s unit in Indonesia will ease global shortages but probably only briefly and if the Indonesian government allows them including at operations owned by First Quantum and China’s massive expansion of smelters to produce copper metal have intensified competition for concentrate since last year A fire at PT Freeport Indonesia’s (PTFI) $3.7 billion Manyar smelter halted operations in October PTFI is owned by Freeport and state-owned Indonesian company MIND ID with stakes of 48.8% and 51.2% respectively “The amounts Freeport exports depend on how long it takes to fix the problem,” said one source with knowledge of the matter adding: “If the (Indonesian) government doesn’t grant (export) permits Freeport may have to stop mining.” Manyar has capacity to process 1.7 million metric tons of concentrate and produce 480,000 tons of copper cathode a year The cause of the fire is still under investigation and has yet to be corrected Freeport McMoRan said in response to a request for comment: “PTFI has substantially completed initial damage assessments and remediation plans are in progress … PTFI currently expects to recommence start-up operations by mid-2025.” “PTFI is working with the Indonesian government to allow continued exports of copper concentrates until full ramp-up of PTFI’s new downstream processing facilities is achieved including seeking an increase to the permitted quota for 2024.” Indonesia’s mining minister Bahlil Lahadalia told an industry summit last week the government had yet to decide whether to approve Freeport’s request for an export licence Manyar was built to process copper concentrate from Freeport’s flagship Grasberg mine in Indonesia the world’s second biggest copper-gold mine due to the Indonesian government trying to discourage exports of concentrate Indonesia’s government wants miners to produce metal locally to add value and boost its revenues Industry sources said Freeport’s concentrate will not resolve the problem of shortages which have hit the treatment and refining charges (TC/RCs) paid by miners when they sell concentrate to be turned into metal Chilean miner Antofagasta and Jiangxi Copper recently agreed significantly lower copper concentrate processing fees for 2025 Treatment charges turned negative in April for the first time ever meaning smelters had to pay miners to turn concentrate into metal instead of being paid Freeport McMoRan is expected to resume shipments of copper concentrate from Indonesia this month under a new export licence after the previous one lapsed in December according to two sources with knowledge of the matter Indonesia has restricted raw material exports to pressure companies to refine minerals locally and add value to its exports. Freeport has local refining capacity, but is seeking to keep exporting concentrate due to a fire last October at its Manyar smelter in East Java The miner will start loading cargoes destined for China on Friday in anticipation of receiving an export licence by month end according to one source with direct knowledge of the matter A shipment of copper concentrate from the company’s mine at Grasberg the world’s second largest active copper mine We need to start shifting it,” the first source said Indonesia’s trade ministry said last week it would support Freeport resuming copper concentrate exports PT Freeport Indonesia did not respond to questions about the shipments sent via text A spokesperson said separately they expected the government would accommodate a plan to resume exports Indonesia’s mining ministry did not respond to questions about the shipments from Reuters sent via text message Freeport presold cargoes of copper concentrate in January with a contingent claim that the contracts will take effect only if they successfully renew their export licence said a third source with direct knowledge of the matter Should exports resume, it will relieve, although not reverse, a shortage of copper concentrate that has hit the profits of smelters Treatment charges – fees paid by miners to smelters for converting raw materials into metal – stood at a negative $12.5 a ton on February 7 the lowest level yet recorded in information provider Fastmarkets’ index tracing data back to 2013 Pratima Desai and Fransiska Nangoy; Editing by Lewis Jackson and Jan Harvey) The Grasberg mine has the world's single largest known gold reserve and the second largest copper reserves Nested coaxial porphyry ore-bodies and sulphide rich skarn at the margins; Eocene clastic carbonates with siltstones/sandstones PT Freeport Indonesia (subsidiary of Freeport McMoran Copper and Gold) Grasberg mine has the single largest known gold reserve and the second largest copper reserves in the world at Tembagapura in Irian Jaya – the most easterly of Indonesia’s provinces – on the western half of the island of New Guinea Grasberg minerals district includes open-pit and underground mines It has produced 528 billion ounces of copper and 53 million ounces (Moz) of gold including more than 432 billion ounces of copper and 46Moz of gold from the Grasberg open pit during 1990 to 2019 Extraction of ore from the Grasberg Block Cave underground mine commenced in the second quarter of 2019 which is the same ore body mined from the surface in the Grasberg open pit The mining of the final phase of the Grasberg open pit was completed in Q4 2019 and the mine transitioned from open-pit mining to large-scale underground mining Grasberg Block Cave is estimated to contain proven and probable reserves of 275.2 billion ounces of copper and 14.2Moz of gold as of December 2019 Freeport McMoran holds a 48.8% interest in the mine while the remainder (51.2%) is held by Inalum Freeport McMoran and Rio Tinto sold a majority interest in Grasberg to Indonesia’s state-owned aluminium mining company Freeport held a 90.64% stake in the mine operation while Rio Tinto had a 40% participating interest the government agreed to provide a special licence to Freeport to enable the company to continue the extraction of ore until 2041 The mine stands at the collision of the Indo-Australian and the Pacific tectonic plates Two distinct phases of intrusion have led to the production of nested coaxial porphyry ore bodies and sulphide-rich skarn at the margins while sedimentary strata include Eocene clastic carbonate limestone with siltstones and sandstones near the base The Dalam Diatreme (DD) forms the first intrusive stage being highly fragmental and characterised by clasts and a matrix of dioritic composition Mineralisation is largely disseminated and chalcopyrite dominant having average grades of 1.2% copper and 0.5g/t gold The second intrusive stage, the Main Grasberg Stock (MG), is composed of non-fragmental, porphyritic monzodiorites, forming a quartz-magnetite dilational stockwork with veinlet-controlled copper-gold mineralisation with averages of 1.5% copper and 2g/t gold which was the final intrusion and the most weakly mineralised an underground mine and four concentrators which forms a mile-wide crater at the surface producing more than 67 million tonnes of ore and providing more than 75% of the mill feed in 2006 Designed to be fully mechanised, using 6.2m³ Caterpillar R1700 load-haul-dump vehicles (LHDs) at the extraction level with a truck haulage level to the gyratory crusher the Deep Ore Zone (DOZ) block cave mine is one of the largest underground operations in the world a second underground crusher and additional ventilation were installed to increase daily capacity to 50,000 tonnes Ramp-up production has begun at the Deep Mill Level Zone (DMLZ) underground mine which lies below the DOZ underground mine and to the east of the Grasberg ore body Ore from both operations is transported by conveyor to centralized mine facilities feeding a combined daily average total of some 225,000t of ore to the mill and 135,000t to the stockpiles Production equipment includes 30m³–42m³ buckets a 170-strong fleet of 70t–330t haul trucks GPS and robotics used in the mine’s state-of-the-art slope-monitoring system The ore undergoes primary crushing at the mine, before being delivered by ore passes to the mill complex for further crushing, grinding and flotation. Grasberg’s milling and concentrating complex is the largest in the world, with four crushers and two giant semi-autogenous grinding (SAG) units processing a daily average of 240,000t of ore A flotation reagent is used to separate concentrate from the ore Slurry containing 60-40 copper concentrate is drawn along three pipelines to the seaport of Amamapare gold and silver – is shipped to smelters around the world The facilities at the port also include the PT Puncak Jaya coal-fired power station Ore extraction from the Grasberg Block Cave underground mine began in H1 2019 and it is expected to produce an additional 272,000Moz of copper and 14Moz of gold over the mine life Total undercutting in the underground mine as of July 2019 stands at 48,000m² while the number of active production blocks increased to three Ore extraction increased to an average of 17,000t a day in December 2019 Production is expected to subsequently increase to an average of 30,000t of ore per day in 2020 60,000t in 2021 and 130,000t in 2023 from a total of five production blocks The ore is transported to the processing facility by a fully autonomous underground railway system Give your business an edge with our leading industry insights View all newsletters from across the GlobalData Media network Copper Wire Market Analysis: Industry Market Size Copyright © ChemAnalyst - 2020 | Terms & Conditions | Privacy Policy Grasberg mine in the Indonesian region has been a source of untold wealth for its owners but local communities say it has brought poverty and oppression a snow-covered silver crag on what was then known as Dutch New Guinea Dozy noticed an unusual rock outcrop veined with green streaks Samples he brought back confirmed exceptionally rich gold and copper deposits Today, these remote, sharp-edged mountains are part of West Papua, Indonesia, and home to the Grasberg mine, one of the biggest gold mines – and third largest copper mine – in the world. Majority-owned by the American mining firm Freeport McMoRan, Grasberg is now Indonesia’s biggest taxpayer, with reserves worth an estimated $100bn (£80bn) But a recent fact-finding mission (by the Brisbane Archdiocese’s Catholic Justice and Peace Commission) described a “slow-motion genocide” (pdf) taking place in West Papua warning that its indigenous population is at risk of becoming “an anthropological museum exhibit of a bygone culture” “There is no justice in this country,” whispered one indigenous villager on condition of anonymity Dozy had not set out to find gold in 1936; his goal was to scale the region’s highest glacial peak But his discovery sparked the interest of Freeport Sulphur – later to become Freeport Minerals Company and then through a 1981 merger with the McMoRan Oil and Gas Company Freeport McMoRan – whose board of directors included the well-connected Godfrey Rockefeller (serving from 1931 until the early 1980s) and Henry Kissinger (1988-1995) indigenous tribes such as the Kamoro and the Amungme claim their communities have been racked with poverty Chief of the Kamoro people close to the Grasberg mine.“We are a coastal people and we depend on the environment,” says the Kamoro’s chief a lowland village down-river from the Grasberg mine and we are known by the three Ss: sago [trees] Although most Kamoro still try to eke out a living fishing and foraging for food But now we face major competition from non-Papuan migrants.” with numbers expected to fall to 29% by 2020 if migration rates continue Clashes between the indigenous Christians – and migrant Indonesian Muslims – have also resulted in riots, fires and injuries as the Indonesian settlers have appropriated it,” says Dr Agus Sumule professor of agricultural socio-economics at the University of Papua “The stresses [on indigenous people] are intense,” says Sumule “They have been very negatively impacted.” The compensation paid for Kamoro and Amungme land has been mainly in the form of communal benefits, such as the building of homes, schools and places of worship “Perceptions of land rights and historic compensation claims are a continuing source of dissatisfaction and conflict in the mining area.” Recent census data shows Papua’s GDP per capita at $3,510 compared to the Indonesian average of $2,452 Yet Papua has the highest poverty rate in the country child and maternal mortality rates in Indonesia The scale of destitution is best observed from the highland Amungme village of Banti The practice has devastated the environment turning thousands of hectares of verdant forest and mangroves into wasteland and rendering turgid the once-crystal waters of the highlands The tailings from the Grasberg mine are so rich with ore that Papuans walk for as long as a week to get here Crowding the length of the river and the delta wasteland thousands of unlicensed panners shore up small sections to slow the river’s flow and dig into the thick sediment on the side Although some of these panners are located within Freeport’s official mining operations they are not evicted or controlled in any way they claim they sell their findings to the police and military who work as security on the mine (An anonymous Freeport source also confirmed this) bends over her pail of water as she filters out rocks and searches for ore and you can only find money from gold,” says Martine who followed her husband to the delta 15 years ago by walking 60 miles over the mountains from their remote highland village The Aikwa river which used to provide the Kamoro people with the staples of their existence.“I work really hard as I want to give my children better lives so she helps me here mining,” says Martine of her daughter which I sell either to the police or [to buyers] in Timika.” did not respond to multiple requests for comment The company’s website defends its method of disposal of tailings at Grasberg an affiliate company: “PTFI’s controlled riverine tailings management system which has been approved by the Indonesian government uses the unnavigable river system in the mountainous highlands near our mine to transport tailings to an engineered area in the lowlands where the tailings and other sediments are managed in a deposition area.” the company says that the tailings management method was chosen because studies showed the environmental impact caused by its waste material was reversible Elsewhere on its website, the company says: “We are committed to respecting human rights. Our human rights policy requires us (and our contractors) to conduct business in a manner consistent with the Universal Declaration of Human Rights and to align our human rights due diligence practices with the United Nations Guiding Principles on Business and Human Rights (UN Guiding Principles).” The company also emphasises its work with indigenous people in West Papua A 2015 Freeport McRoRan report on working towards sustainable development said: “PTFI has engaged with indigenous Papuan tribes for decades including through numerous formal agreements to promote workforce skills training education and basic infrastructure development … In 2015 PTFI continued to evaluate the effectiveness of alternate options for Kamoro community members whose estuary transport routes are impacted by sedimentation associated with the controlled riverine tailings management system for route flexibility as well as additional local economic development programmes were identified as additional mitigation measures during the year.” Back in the area surrounding the Grasberg mine find themselves pulled into the bar and sex industries that cater to the miners particularly around the highland village of Banti Here brothels and bars line up side by side allegedly with help from the Indonesian military who are said to supply sex workers and alcohol according to a Freeport source who wished to remain anonymous Inside a brothel complex in Timika, West Papua. HIV rates in the region are of ‘epidemic’ proportions, according to the UN 15 times higher than anywhere else in Indonesia.Indigenous chiefs have watched as a newfound promiscuity has brought sexually transmitted infections that have ravaged their communities “Traditional Papuan culture forbids free sex but alcohol makes our communities vulnerable,” says the Amungme chief “And brothels make it easy to contract HIV.” HIV rates in West Papua are of “epidemic” proportions, according to the UN 15 times higher than anywhere else in Indonesia HIV is also far more prevalent among indigenous Papuans Yet the existence of only one hospital – built by Freeport – means that most people particularly those in remote highland villages Late last year, the Indonesian president, Joko Widodo, claimed he was willing to work towards a “better Papua”: “I want to listen to the people’s voices.” However, human rights violations have actually increased since Widodo took power, according to Indonesia’s Commission for the Disappeared and Victims of Violence (Kontras), which has logged 1,200 incidents of harassment, beatings, torture and killings of Papuans by Indonesian security forces since his election in 2014 The Indonesian government did not respond to multiple requests for comment The country’s military has consistently denied any wrongdoing in Papua Later this year, West Papua is expected to be granted full membership of the Melanesian Spearhood Group an important sub-regional coalition of countries including Fiji Yet some fear the opportunity for change in Papua is long gone “Is healing even possible?” asked Professor Agus Sumule located in the province of Papua in Indonesia is one of the world’s largest open-pit copper and gold mines and destroy aquatic life closely tied to traditional livelihoods For 30 years, the Arizona-based mining company has dumped millions of tonnes of mine waste directly into the Ajkwa river system where it flows into an area of lowland forest A series of dikes and levees fail to contain the waste means Freeport no longer holds a majority stake its responsibility for this massive and ongoing environmental disaster remains The mine is adjacent to Lorentz National Park, one of the largest protected areas in Southeast Asia and home to extensive biodiversity and varying ecosystems from alpine to tropical marine environments and wetlands. A study published in Nature.com in 2016 found that 138 km2 of forest has been smothered and destroyed by tailings since 1987 an area over 42 times larger than the mine itself “Even the smallest boats are unable to pass through coastal areas that are now filled with sedimentation from mine tailings People are forced to bath and fish in tailings laden rivers An end to mining activity must be on the table in order to protect the beauty and biodiversity of this place and the communities who live there.” A String of Tailings Dam Failures Shows the Urgency of Putting Safety First Multiple Dams Fail at Indonesian Nickel-Mining Facilities Any US-Indonesia Trade Deal Must Respect Indonesians Norwegian asset manager excludes mining companies over ocean dumping Ditch Ocean Dumping Indonesia 200061-202-887-1872 • info@earthworks.orgEIN/Tax ID: #52-1557765 Fight Trump's destructive agenda all year JAKARTA — When the Indonesian government took a controlling stake in the operator of one of the world’s richest gold mines at the end of 2018 proponents hailed the move as a historic step toward national and economic resource sovereignty The breathless media coverage of the transaction which saw the government take a 51 percent stake in PT Freeport Indonesia (PTFI) previously majority-owned by Arizona-based Freeport-McMoRan framed it as the “return” of a prized asset — the Grasberg gold and copper mine — to the Indonesian public after decades of foreign control But little was said about the long legacy of toxic pollution from the mine would finally bring real benefits to the indigenous people on whose land the mine sits and who remain among the most impoverished communities in Indonesia a 41.2 percent stake in PTFI goes to state-owned smelting company PT Indonesia Asahan Aluminium A 10 percent stake is held by the government of Papua province is managed 60:40 between an Inalum-controlled company and a province-owned firm But along with ownership in one of the most coveted mines on Earth Inalum and the Papua government have also inherited a pollution problem stemming from the mining waste “Does the completion of the divestment deal mean that the environmental problems can be resolved national coordinator of the Mining Advocacy Network (Jatam) the national and provincial governments will also have to take the brunt of the fallout from the environmental damage caused by the mining operations That fallout could amount to some $13 billion — the estimated cost of environmental damages wrought by PTFI which identified a wide range of irregularities in the company’s operations and contract The findings included indications of reckless mining and the disposal of mining waste into rivers In April 2018, the Ministry of Environment and Forestry followed up with a pair of decrees ordering PTFI to overhaul its waste management plan as a prerequisite for the divestment They included slashing toxicity levels at dumping sites and producing a strategic environmental impact assessment under the supervision of the environment ministry the miner had drawn up a roadmap to manage its tailings disposal through 2030 PTFI produces 167 million metric tons of tailings a day and dumps it directly into the Aghawagon and Ajkwa rivers in Papua’s Mimika district “What we’re pushing for is how to use this amount of tailings,” said Ilyas Rasyid the environment ministry’s inspector general Therefore we will do research on the use of tailings.” The audit that spurred the sanctions and decrees over PTFI’s waste management practices also found that Freeport had used 45 square kilometers (17.5 square miles) of protected forest area without obtaining the proper permits Ilyas said the environment ministry had issued a permit 20 for 38 square kilometers (14.7 square miles) of forested land for its waste management But he said PTFI would still have to pay fines for the previous unpermitted operation Merah criticized this decision to simply fine the company as disappointing mining operations in forest areas without an IPPKH permit constitute a criminal offense with a maximum punishment of 10 years in prison Where’s the criminal punishment?” Merah said “There are layers of criminal acts and they’re being allowed to be washed away by paying a fine.” saying it had failed to include civil society representatives in its discussions about PTFI’s roadmap for the mining waste management “What exactly is the roadmap talking about Does it comply with stringent environmental regulations How exactly does the divestment deal mandate for environmental protection The public deserves to know the answers to these questions because this is a public matter,” Henri said “What we had hoped for from this acquisition was not only economic benefits but also better protection for the people of Papua,” he added executive director of the Papuan chapter of the Indonesian Forum for the Environment (Walhi) said taking a majority stake in PTFI didn’t necessarily mean an end to the problems arising from the mine “Every day [PTFI] postpones rehabilitating the damaged environment while every second the waste that enters the river poses a threat [to communities],” Maurits said an expert in natural resources law at the University of Tarumanegara in Jakarta said PT Inalum would be left legally and financially responsible for the environmental damage caused by PTFI’s previous activities He said the government would have gotten a more beneficial deal had Freeport’s work permit been allowed to expire in 2021 including not paying as much for the controlling stake in PTFI and getting a more advantageous tax arrangement after 2021 “The direct and indirect economic benefits would then be for the people and economy of Papua,” Ahmad said In the decades since the first shipment of copper left Grasberg in 1972 the wealth of the mine has barely trickled down to the local communities Papua remains one of the least developed and most impoverished provinces in Indonesia with high rates of illiteracy and infant and maternal mortality the people have been mired in conflict with the mine operator and security forces and over the following decades have been further displaced and marginalized by migrants from elsewhere in Indonesia drawn to the mining boomtown The National Commission on Human Rights (Komnas HAM), a state-funded body, said in March 2017 that PTFI had never compensated the indigenous people as the original stewards of the land where it operates characterizing Freeport’s concession as a land grab “The divestment deal cannot be seen as an effort to improve the welfare of the indigenous communities there — to think otherwise is silly,” Maurits said “People shouldn’t have to depend on funds given by the company,” Maurits added the company should clean up the mess it left behind so that local people can once again rely on the environment to meet their needs In August, a coalition of Papuan activists called FMPPF staged a protest calling on PTFI and the Indonesian government to make community rights and welfare a central part of the takeover deal. Their demands included more participation of indigenous people in the mine’s operations recognition of traditional land rights in the company’s concession area and more involvement by indigenous communities in drafting the company’s policies “The company and the national and provincial governments must not forget that the mine isn’t an independent entity,” Maurits said “There were communities that lived safely there before the company arrived.” FEEDBACK: Use this form to send a message to the author of this post Elements are rarely given human characteristics The reddish-brown metal is often called "Doctor Copper" for its perceived ability to forecast economic trends; in finance many professionals regard copper as a financial prognosticator thanks to its vast presence across industries we often overlook this valuable commodity's utility in our everyday lives but we benefit from it daily in our electronic products copper's natural properties make it corrosion-resistant These factors combined make copper one of the most valuable resources on the planet we will explore the 10 largest copper mines in the world Located in the arid region of the Atacama Desert and JECO reigns supreme as the world's leading copper mine in production Escondida yielded more than 1 million tonnes of copper and 882,100 metric tons for 2023 operators are looking to scale up production to achieve an annual output of 1.2 million in the coming years as the latest figure from this year suggests that Escondido has increased total output by 7% thanks to higher ore grades it is estimated the mine holds enough reserves to last until 2078 Escondida has positioned itself as a valuable stakeholder in Chile and though the enterprise has experienced sporadic labor disputes and operations are presently ongoing without any roadblocks further solidifying the mine's operation and reducing dependence on the area's groundwater reserves This enterprise is owned by three shareholders: Anglo American PLC Collahuasi yielded around 563,650 tonnes of copper; with an estimated 2.2 billion tonnes of mineral deposit and a copper concentration of 0.82% the mine is expected to operate until the end of the century the Collahuasi mining district has been a source of commercial activity for nearly 150 years dating back to 1880—with a sporadic halt to operations only during the Great Depression Collahuasi has also contributed to its community and added significant economic growth to the Tarapaca region by employing thousands of workers and vendors serving as a good omen for the rest of the year and beyond This venture is owned by multiple shareholders with Freeport-McMoRan owning a leading 53.5% of shares Cerro Verde produced around 453,000 tonnes of copper With an estimated 4.63 billion tonnes of ore grading operations are expected to continue until the end of 2052 after existing reserves are depleted The 54-year-old project has contributed millions to the local Arequipa community spending an aggregate of $256 million from 2005 to 2023 while accounting for 2.5% of Peru's national gross domestic product the Peruvian government's Ministry of Energy and Mines department approved a $600 million project to increase production is located in the picturesque Sonora state in Mexico generated 427,550 tonnes of copper for 2023 and is expected to continue workflow for an additional 30 years the mine has experienced several ownerships Buenavista has continued to lead as Mexico's top copper producer yielding a staggering 60% of the country's copper and is expected to increase output after the BuenaVista zinc project is completed The Kamoa-Kakula Project is a joint enterprise between the Ivanhoe Mines and the Democratic Republic of Congo government the underground mine harvested 393,551 tonnes of copper in 2023 and aims to increase production to 440,000 to 490,000 this year Mining is expected to continue for another 40 years until 2064 thanks to 944 million tonnes of combined mineral resources Stakeholders proudly boast that Kamoa generates the "greenest" copper in the world and aims to have the entire facility powered through hydroelectricity Nestled among the towering mountains in the Papua province of Indonesia the Grasberg mine is owned by PT Freeport Indonesia and PT Indonesia Asahan Aluminum The underground mine is projected to have a remaining mine life of 16 more years the pit is also home to significant gold and silver reserves Operations have been primarily smooth but sometimes volatile local communities have had several concerns over the last few decades about the environmental impact of the mine Grasberg has experienced multiple labor disputes and natural disasters and the mine's project is still being developed for long-term use the Antamina mine is operated by Compania Minera Antamina and is an open-cast project located 4,300 meters above sea level The project generated 410,070 tonnes of copper in the previous year with operations anticipated to continue until 2036 but may operate longer if an extension is requested Antamina has positively contributed to the region nearly half of which come from the local Ancash area while increasing economic activity from domestic and regional suppliers the government of Peru approved a $2 billion expansion project after several meetings between stakeholders from Antamina and Peruvian Energy and Mines Minister Oscar Vera Gargurevich The Morenci mine has the distinction of being the sole representative of the United States on this list Owned by Freeport-McMoRan and located in the arid state of Arizona this open-pit mine has been operational since the 1880s Morenci generated 399,100 tonnes of copper in 2023 and has enough reserves to last until 2051 The historical significance of Morenci cannot be overstated as the entire town of Morencu depends on the continuity of the Morenci Mine FreePort-McMorRan's CEO stated her intention to aggressively increase production thanks to heightened global demand in addition to receiving some of the federal government's $475 million for clean energy projects El Teniente is rumored to be the world's largest underground copper mine this historic mine began operating as early as 1819 and still continues today The venture is owned by Corporacion Nacional del Cobre de Chile and produced an impressive 397,320 tonnes of copper in 2023 Current estimates predict the mine will last another 50 years which comes as welcoming news to the thousands of residents who call Sewell home—the main town on the Andean mountainsides Given El Teniente's historic contribution to the Chilean economy many buildings in Sewell have been renovated to house miners and their families other structures have been preserved to keep their memory alive First Quantum Minerals' Cobre Panama project ends the list at No The copper mine is in Panama's Colon province Cobre yielded 331,000 tonnes of copper last year and the mine is anticipated to remain operational for the next 31 years based on estimates of probable reserves the mine has been embroiled in controversy for political reasons with the Panamanian government ordering operations to be halted after mass demonstrations from environmental groups the new government is seen as more business-friendly and may reverse the previous administration's decision offering hope for First Quantum and the project It is estimated that demand will outstrip supply by an estimated 6.5 million metric tons as demand for electrification looms Unless drastic measures are taken to increase production copper will remain an indispensable commodity to industries and the broader global economy Only time will tell whether production will be increased to meet the demand but essential factors include political stability in South America and investments in green energy to alleviate environmental concerns photos and original descriptions © 2025 worldatlas.com The Grasberg Mine is a vast open pit mine in Papua, Indonesia For years it has been one of the most productive mines in the world with massive reserves of gold and copper. Situated high in the rugged Sudirman Mountains near two rare equatorial mountain glaciers This massive mine sits at the collision point of two tectonic plates where millions of years ago hot magma intruded into sedimentary rock layers during the uplift of the local mountains resulting in the formation of copper- and gold-bearing ore. Since the early 1990s the Grasberg operation has been busily extracting this ore at a staggering volume the vast mine produced more than 1 billion pounds of copper and 1 million ounces of gold it is crushed in the mine's milling and concentrating complex The grinding units at the mill can process a daily average of 265,000 tons of ore The ore is then sent in a slurry along three pipelines to the seaport of Amamapare and silver can be shipped to smelters around the world But while production has temporarily fallen away the huge reserves of gold and copper remain—albeit deeper underground Grasberg is now transitioning to underground block carving with underground mines replacing the work in the pit such a massive mining project has not gone without its share of controversy To start are the environmental concerns: Each year the mine dumps tens of millions of tons of waste into the local river system which is now almost devoid of fish and generally considered unsuitable for aquatic life has long insisted that its practices meet industry standards is not a position held by environmental groups and local citizens Tensions have also flared at Grasberg due to the low share of revenue going to local Papuans and questionable payments made by the mine to the Indonesian security forces that protect it. Grasberg Mine is located in the village of Tembagapura in the Papua province of Indonesia This innovative mill was built for a legendary gold mine that never came to be An isolated early 20th-century gold mine in the remote Pine Forest Range contains much preserved equipment this South Dakota mine was the largest and deepest gold mine in Western Hemisphere Direct access to a gold mine showing the boom and bust of Australia's Victorian gold rush An abandoned early 20th-century gold mine in a spectacular setting overlooking Bridgeport Valley and the Sierra Nevada A deep toxic lake fills this abandoned open-pit copper mine A rare chance to enter an original gold mine from the 1800s Metrics details This article has been updated The socio-ecological impacts of large scale resource extraction are frequently underreported in underdeveloped regions is one of the world’s largest copper and gold extraction operations Grasberg mine tailings are discharged into the lowland Ajkwa River deposition area (ADA) leading to forest inundation and degradation of water bodies critical to indigenous peoples The extent of the changes and temporal linkages with mining activities are difficult to establish given restricted access to the region and persistent cloud cover we introduce remote sensing methods to “peer through” atmospheric contamination using a dense Landsat time series to simultaneously quantify forest loss and increases in estuarial suspended particulate matter (SPM) concentration We identified 138 km2 of forest loss between 1987 and 2014 an area >42 times larger than the mine itself the rate of disturbance was highly correlated (Pearson’s r = 0.96) with mining activity Following mine expansion and levee construction along the ADA in the mid-1990s we recorded significantly (p < 0.05) higher SPM in the Ajkwa Estuary compared to neighboring estuaries This research provides a means to quantify multiple modes of ecological damage from mine waste disposal or other disturbance events Study area locator map and overview of tailings flow The Ajkwa Deposition Area (ADA) is bounded by the area potentially disturbed by mine tailings flow. Map created in QuantumGIS 2.12 (www.qgis.org) with cartographic/figure finishing for all figures conducted in Inkscape 0.91 (www.inkscape.org) Photos from Google Earth used with permission Four representative pixel trajectories: (a) typical ADA disturbance showing an acute decrease in NDVI associated with inundation; (b) simple linear trend common for intact forest; (c) protracted NDVI decline typically associated with urbanization; (d) ephemeral vegetation disturbance and regrowth in braided river system Blue dots are NDVI values from individual image dates; very low NDVI values may result from cloud cover Red dots are breakpoint dates outputted from NITA with segments indicative of disturbance or regrowth Vegetation disturbance in the ADA (line) overlaid on annual Grasberg ore production (bar) Change in 90th percentile suspended particulate matter (SPM) concentration (log scale) from the pre-1998 period to the 1998–2014 period Also shown are 21, trident-shaped sampling transects at river outlets on either side of the ADA outlet (shown here: 6 km transects for visual clarity). Each trident contains three transects, each with 200 sample points. Map created in Matlab 2015 (www.mathworks.com) using Landsat surface reflectance imagery available from the U.S Yearly median SPM concentrations as sampled at 201 transect points (within 2 km-long transects) at the Ajkwa Estuary (the outlet for the ADA) and 4,020 points at 20 other nearby river outlets; shaded regions indicate the variability (interquartile range) of SPM for a given year This variability results from spatial variation over 201 or 4,020 sample points as well as the 1 to 9 image dates used to calculate the annual The relative increase in SPM at the ADA outlet remained significantly higher (two-sample t-test p < 0.05) than non-ADA outlets for transects up to 2 km in length from the coastline after which transport or dilution in open waters equilibrated ADA outlet SPM concentrations with those of nearby river system outlets This comparison of SPM at ADA and non-ADA outlets also allowed us to control for the influence of temporally or spatially variable precipitation patterns 90th percentile SPM concentrations (log scale) in the Upper, Lower, and Outer Ajkwa Estuaries (ADA outlet) from (a) 1987 through 1997, and (b) 1998 through 2014. Given that spatial averaging was not applied in this map, the highest values may include cloud edges or silt. Map created in Matlab 2015 (www.mathworks.com) using Landsat surface reflectance imagery available from the U.S we believe this to be a rare occurrence because red reflectance values of >17% are essentially disallowed by the SPM model (i.e. (2015) found that a red-band reflectance model for total suspended solids was tractable for reflectance values up to 22% The most common trajectory observed in this study was the three-segment pixel history representing a single inundation event with no vegetation recovery (Fig. 3a) the mean error (n = 3500 simulated pixels for disturbance dates between 1990 and 2006) in number of segments was 0.75 error in the date-before-disturbance breakpoint was 124 days date-before disturbance was underestimated and date-of-nadir was overestimated there was a consistent tradeoff between parameterizations that yielded high accuracy with respect to number of segments compared to those that yielded more precise fits (e.g. lower RMSE and lower error in disturbance dating) we measured 50.2 km2 and 131 km2 of disturbed vegetation within the ADA both of which are less than the approximately 65 km2 and 164 km2 of disturbance measured by Paull et al The differences between our estimates and those by Paull et al classifying all river pixels as “disturbed” even if a given river pixel was identified as “water” prior to 1987 different definitions of “disturbance” in the Upper Ajkwa Estuary: Paull et al labeled all pixels within the Upper Estuary as “disturbed” while we more specifically identify disturbance only when a given pixel’s NDVI declines below the 0.40 NDVI threshold We used a single dataset (199 Landsat surface reflectance images) to document coupled riparian vegetative disturbance and coastal water quality degradation and to examine relationships between these changes and Grasberg tailings deposition The cloud-resilient disturbance detection approach developed for this study characterizes the pattern of disturbance and degradation in a manner that is unprecedented with respect to its fine spatial and temporal resolution this study builds on and contributes to decades of research and advocacy by Papuan environmentalists by illuminating the broad-scale and long-term processes of copper and gold extraction at Grasberg that mutually affect regional ecosystems and indigenous communities alongside increasing global demand for cheap copper that gave rise to the regulatory environment in which mining operations and waste disposal take priority over regional deforestation and associated human impacts Grasberg milled over 1.3 billion tons of ore among the top global producers in terms of throughput the upwardly biased interquartile range shows that while the “typical daily” (i.e. median) SPM content may be in the range of 50 g/m3 there are numerous dates where this value is much higher we hope that our results provide a measure of accountability regarding extant environmental degradation in Papua and support marginalized indigenous Papuan communities that seek industrial transparency Our analysis is set within the Mimika Regency of the Papua province of Indonesia (Fig. 1) This region includes forested and mangrove areas along the Ajkwa River as well as coastal waters of the Arafura Sea approximately 60 km south of Grasberg Our study’s first component introduces the Noise Insensitive Trajectory Algorithm (NITA) to examine short- and long-term vegetation disturbance along the river; the second component addresses the spatial diffusion of suspended sediments into Arafura coastal waters All relevant geographic features fit within a single Landsat tile (WRS-2 most of the aforementioned algorithms rely on consistent data availability due to relatively low cloud cover we sought a disturbance detection algorithm that has ease of implementation the ability to overcome limitations imposed by missing image dates and remnant atmospheric contamination and which did not require information on sub-annual phenology Lacking an exhaustive comparison between NITA and existing disturbance detection algorithms we do not make the assertion that other algorithms could not perform equally well The NITA algorithm is implemented on each image pixel and uses all image dates containing valid pixel-level spectral information. The inputs into the algorithm are the set of valid image dates (“x”), the accompanying set of spectral index values (“y”), and the user-defined parameters, max_segment, bail_thresh, prctile, filt_dist, and penalty each described in Table 1 An overview of the NITA algorithm as implemented on a single pixel time series follows (also see Fig. 8): Calculate the noise variable for the entire times series using the median forward finite difference of the set of spectral values This variable internalizes atmospheric contamination linear fit in accordance with the prctile parameter Compare the value of bail_thresh with the ratio of error of the initial linear fit to noise where logL is the log-likelihood function value In order to select the most effective input parameter set we tested the sensitivity of results against simulated data representing the key pixel trajectories in our Papua study area Idealized trajectories were manually delineated for disturbances in 1991 and 2003 as well as braided river dynamics noise was added in two ways: (1) Real sets of valid dates (i.e. cloud- and SLC error-free dates) were generated from 100 pixels randomly sampled throughout the image 20 valid date sets were randomly selected from the 100 pixel sample 20 sets of random noise were added according to a non-parametric noise model which was based on the spectral index distributions of 100 forested pixels This effectively created 400 example pixels for each of the manually-delineated trajectories in question and penalty were varied to determine their impact on estimates of model complexity (number of segments) fit RMSE compared to the originating trajectory date-before-disturbance breakpoint and date-of-nadir breakpoint changes in filt_dist and penalty would simultaneously improve accuracy of model complexity while reducing accuracy of disturbance dating and vice versa The parameters max_segment and prctile were not tested because their sensitivities can be understood logically; they are provided to the user for fine tuning Following selection of a reasonable parameter set (prctile = 90 we conducted an accuracy assessment using 100 manually-generated trajectories based on real data from 100 pixels with 1 to 5 “true” segments In the same manner as the parameter testing above these 100 idealized trajectories were used to simulate missing dates and noise We simulated 10 sets of missing dates and 10 sets of random noise for each trajectory yielding 3900 “pixels” with one segment These trajectories represented the spectrum of disturbance dates and types present in our study area Noise standard deviation was set to 0.2 NDVI units 90th percentile SPM values at the ADA outlet were compared to 90th percentile values at non-ADA outlets for pre-1998 and post-1998 periods This comparison supports identifying changes unique to the ADA outlet transect by decoupling spatial and temporal variability in SPM from changes in river channel morphology and variability in rainfall or other mesoscale phenomena that may affect SPM transport Capturing coupled riparian and coastal disturbance from industrial mining using cloud-resilient satellite time series analysis This Article was updated after publication due to errors in the sizing of the Figures This has now been corrected in the PDF version of this Article; the HTML was correct at the time of publication Language Diversity in the Pacific: Endangerment and Survival F. 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Approaches from extractive industries research An automated approach for reconstructing recent forest disturbance history using dense Landsat time series stacks Trajectory-based change detection for automated characterization of forest disturbance dynamics Detecting trends in forest disturbance and recovery using yearly Landsat time series: 1 LandTrendr — Temporal segmentation algorithms Near real-time disturbance detection using satellite image time series Continuous monitoring of forest disturbance using all available Landsat imagery Detecting changes in vegetation trends using time series segmentation Robust monitoring of small-scale forest disturbances in a tropical montane forest using Landsat time series Detecting trend and seasonal changes in satellite image time series On-the-Fly Massively Multitemporal Change Detection Using Statistical Quality Control Charts and Landsat Data Time-series analysis of multi-resolution optical imagery for quantifying forest cover loss in Sumatra 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newsletter — what matters in anthropocene research Separatist rebels killed a New Zealand national working at a giant gold and copper mine operated by U.S.-based Freeport-McMoran in Indonesia’s Papua province and wounded two Indonesian employees during an attack on Monday The attack was the latest violence to hit the Tembagapura area near the Grasberg mine Since late February clashes between armed Papuan separatists and government security forces have left a police officer “Members of the armed criminal group fired at three PT Freeport Indonesia employees,” Papua police spokesman Ahmad Musthofa Kamal told BenarNews “One victim died and two others were wounded,” he said Kamal identified the slain New Zealander as Graeme Thomas Wall and the other two injured employees as Jibril M.A Jibril suffered gunshot wounds to his abdomen and right thigh and Ucok was hit in the right elbow and back The shooting occurred in the company’s office and housing area in Kuala Kencana PT Freeport Indonesia spokesman Riza Pratama said “We are very saddened by the loss of a colleague who died in the shooting incident in the PT Freeport Indonesia office area He said all staff had been transferred to a safe area nearby “Our top priority is ensuring the safety of all employees and their families,” Riza via a text message The West Papua National Liberation Army (TPNPB) operations commander said his group was responsible for the shooting “It is better for Freeport to close down and stop all mining activities in the Timika region We will continue to fight our way,” Hendrik said in a statement said the shootings were carried out by a separatist faction led by Joni Botak “At the moment a joint team (of soldiers and police) are in pursuit of the group,” the state-run Antara news agency quoted him as saying the United Liberation Movement of West Papua (ULMWP) issued a statement about the attack on the employees at the Grasberg mine “The TPNPB has allegedly claimed responsibility The ULMWP urges the international media to treat claims about the shooting with extreme caution,” Benny Wenda “There is a long history of the Indonesian military carrying out killings in order to justify further militarization the ULMWP has always advocated a peaceful approach to the political conflict and we will not allow the Indonesian State to use this incident as another excuse to delegitimize and criminalize us.” A low-level separatist conflict has simmered since the 1960s in Papua and West Papua a region located on Papua Island at the far eastern end of the Indonesian archipelago The region declared its independence from Dutch colonial rule on Dec But that was rejected by the Netherlands and later by Indonesia Indonesian forces invaded the region and annexed it the region held a referendum in which security forces selected slightly more than 1,000 people to agree to Papua’s formal absorption into the nation Papua was rocked by weeks of violence in August and September last year after news about allegations that security forces on Java Island had mistreated Papuan students ignited mass protests This story has been updated to correct the spellings of Hendrik Wanmang and Paulus Waterpauw Add your comment by filling out the form below in plain text Comments are approved by a moderator and can be edited in accordance with RFAs Terms of Use RFA is not responsible for the content of the postings be respectful of others' point of view and stick to the facts Gold mining has been a cornerstone of global economies for centuries fueling industries and driving financial markets Countries with vast gold reserves often rely on mining to boost their economies creating job opportunities and generating wealth An article published by Express UK reported that while many mines worldwide yield only modest amounts of gold annually a select few stand out for their extraordinary output the Grasberg mine in Indonesia holds the crown as the largest and richest gold mine globally Nestled in the remote mountain ranges of Papua the Grasberg mine has earned its reputation as a monumental mining operation With an impressive output of around 48 tonnes of gold each year it’s the largest gold-producing mine on the planet its significance does not end there—Grasberg is also one of the largest copper mines in the world The ore extracted from its depths contains high-grade deposits of both gold and copper To keep pace with the massive scale of operations Grasberg employs around 20,000 people and is equipped with its own infrastructure This extensive network supports the mine’s demanding production schedules and ensures that workers have the necessary resources to carry out their tasks in such a challenging environment Grasberg is operated by PT Freeport Indonesia a joint venture between the Indonesian government and the American mining giant Freeport-McMoRan near the highest peak in Papua—Puncak Jaya—provides access to some of the world’s richest mineral deposits Grasberg was known for its vast open-pit operations with three primary underground mines now driving the operation’s continued success The history of Grasberg dates back to 1936 when Dutch geologist Jean Jacques Dozy first discovered the region’s mineral-rich rocks large-scale mining operations only commenced in the 1960s when Freeport-McMoRan secured the rights to develop the site the mine has undergone continuous expansion with billions invested in tunnelling systems Grasberg produced an astonishing 52.9 tonnes of gold (1.7 million ounces) making it one of the world’s most profitable mining operations With gold reserves still worth an estimated $40 billion Grasberg’s future as a major global producer seems secure for decades to come Environmental concerns have been raised about the impact of sediment and heavy metals on local rivers political tensions in the region have led to security issues and occasional attacks by separatist groups Worker strikes and disputes over pay and working conditions have also posed challenges to the operation the Indonesian government has extended Freeport-McMoRan’s mining lease until 2041 underscoring the significant role Grasberg continues to play in the nation’s economy As the world’s largest gold and copper mine Grasberg remains a remarkable example of both the opportunities and challenges that come with such a colossal industrial operation please click the box below to let us know you're not a robot Get the most important global markets news at your fingertips with a Bloomberg.com subscription Freeport-McMoRan Inc has cut its first-quarter copper sales forecast after heavy rains and landslides shuttered operations at its flagship Grasberg mine in Indonesia over the weekend with the mine not expected to be back online until the end of the month The temporary shutdown is the latest in a string of extreme weather-related disruptions to rock the mining industry amid the changing global climate Freeport said late Sunday it had to free 14 employees trapped in an office building because of “significant rainfall and landslides” at Grasberg the world’s largest gold mine and second-largest copper mine Mudflow damaged Grasberg’s concentrate processing plant as well as part of the road leading to the mine Freeport now expects its first-quarter sales to be lower than the previous outlook provided in January for 900 million pounds of copper and 300,000 ounces of gold The mine typically produces nearly 5 million pounds of copper and 5,000 ounces of gold daily which is located on the island of Papua’s Sudirman mountain range is majority controlled by the Indonesian government but Freeport is the mine’s operator Freeport likely will miss at least four weeks of production at Grasberg because of the floods who cut his first-quarter earnings estimate for the company by 9% to 40 cents per share “This does not materially impact the Freeport investment case but it does highlight that there are many operating risks in mining and even the best operators are not immune,” LaFemina said in a note to clients Shares of Phoenix-based Freeport fell about 0.3% to $42.22 in Monday afternoon trading in New York Ernest Scheyder and Gokul Pisharody; Editing by William Mallard Rio Tinto and Freeport McMoRan have reached agreements to divest a majority stake in the Grasberg copper and gold mine to Indonesian state mining company PT Indonesia Asahan Aluminium (Persero) (Inalum) for a total consideration of $3.85bn The agreements are in line with the Indonesian Government’s policy to ensure domestic mining companies hold a majority stake in foreign miners operating in the country Rio Tinto currently holds a 40% participating interest in the Grasberg mine with a 40% share in production above a pre-agreed level and 40% of all production after 2022 Inalum will have 51.2% ownership in PT Freeport Indonesia which is Freeport McMoRan’s operating subsidiary in the country while Freeport will retain a 48.8% interest while the remaining $350m will be paid to Freeport In August this year, Freeport signed a deal with the government to hand over a majority stake in the Grasberg mine The deal also includes the government granting a special mining permit to Freeport to continue ore extraction until 2041 once Inalum gains 51% interest Don’t let policy changes catch you off guard Stay proactive with real-time data and expert analysis Rio Tinto chief executive J-S Jacques said: “This agreement is a significant step towards the sale of our interest in Grasberg and provides further evidence of our commitment to strengthening the portfolio by selling non-core assets and driving higher returns across the business maintain a strong balance sheet and allocate capital to the highest value opportunities in order to ensure that Rio Tinto continues to deliver sector leading returns to shareholders” Subject to regulatory approvals and other conditions the completion of the transactions is slated for the first half of next year Grasberg is regarded as the world’s second largest copper reserves and produced 468kt of copper last year Copper miner Freeport Indonesia has temporarily halted mining and processing work at its Grasberg mine after flooding and debris flow from heavy rains and landslides damaged its milling complex Freeport-McMoRan Inc said on Sunday evening Freeport-McMoRan said it expected first-quarter 2023 sales to be lower than the previous outlook provided in January for 900 million pounds of copper and 300,000 ounces of gold Freeport Indonesia’s daily output was nearly 5 million pounds of copper and 5,000 ounces of gold Preliminary estimates indicate operations can be restored by the end of February adding that there was no impact to PT Freeport Indonesia’s long-term plans The company said it had freed 14 employees trapped in an office building because of the flood but added there were no casualties in the recovery effort launched on Saturday “Some of the concentrate processing plant had mudflow and several sections of the mine road were damaged,” Freeport Indonesia Chief Executive Tony Wenas said in a statement on Sunday adding that the situation was under control (By Bernadette Christina and Gokul Pisharody; Editing by William Mallard ShareSaveMoney MarketsFreeport-McMoRan Could Lose Over $3 Billion In Revenues Due To Grasberg TransitionByTrefis Team Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analystsfor Great SpeculationsFollow AuthorSep 23 05:40am EDTShareSaveThis article is more than 5 years old.An armed soldier stands guard outside a tram station at Freeport McMoRan Inc.'s Grasberg copper and .. More gold mining complex in Papua province Freeport is the world's largest publicly traded copper producer The ongoing 2-year transition at the Grasberg mine in Indonesia, under which the mine is being converted from open pit to an underground mine, is set to deprive Freeport-McMoRan (NYSE: FCX) from taking advantage of positive trends in global gold and copper prices it would be interesting to know the potential revenue that FCX could lose out on a] 37% Decline In Indonesian Copper Revenue b] >60% Decline in Indonesian Gold Revenue Conclusion: Projected Decline Of 17% In Total Revenues See How It’s Powering New Collaboration and What-Ifs More Trefis Data Like our charts? Explore example interactive dashboards and create your own The world’s largest gold mines come in all shapes and sizes Here’s a look at the true behemoths and which companies own them the world’s 10 largest gold mines produced nearly 337 metric tons (MT) of the yellow metal in 2022 Nevada Gold Mines is the largest gold-mining complex in the world, producing 68.5 percent more of the precious metal than the next largest gold mine on this list. The operation is a joint venture between Barrick and Newmont (TSX:NGT,NYSE:NEM) the world's largest gold-producing company which has a 38.5 percent stake in the asset Nevada Gold Mines encompasses several prolific gold deposits The gold-mining complex has combined proven and probable reserves of 29.6 million ounces and measured and indicated resources of 49 million ounces it's located in the top US gold-mining jurisdiction The US ranks as the world's fourth largest gold-producing country In keeping with its Greenhouse Gas Reduction Roadmap, Barrick is building a 200 megawatt alternating current photovoltaic solar facility to accelerate its decarbonization program The Grasberg mining district is located in Indonesia and is the second largest gold mine and second largest copper mine in the world. The majority of the asset is owned by Freeport-McMoRan (NYSE:FCX) the ninth largest gold-mining company by production Grasberg consists of the Grasberg block cave, the Deep Mill Level Zone (DMLZ) and Big Gossan. Daily production at Grasberg reportedly amounts to approximately 5 million pounds of copper and 5,000 ounces of gold Freeport-McMoRan's subsidiary PT Freeport Indonesia is undertaking long-term mine development activities at the Kucing Liar deposit in the Grasberg mining district which the company says has the potential to produce over 6 billion pounds of copper and 6 million ounces of gold between 2028 and the end of 2041 Olimpiada is an open-pit operation that has been in production since 1996. It is located in Russia, which tied with Australia as the second largest gold-producing country in 2022. The mine is owned by the fifth largest gold-mining company by production, Polyus Gold (LSE:PLZL,MCX:PLZL) The Boddington gold and copper mine is one of the largest gold-producing mines in Australia The mine has been in operation since 2009 and is wholly owned by Newmont Looking forward, strong production at Boddington is expected to have a significant impact on the stability of Newmont's total gold output for 2023 the company reports that "(b)ased on mine sequencing gold production is expected to decline in 2024 and 2025 due to lower grade ore and stripping in the South pit." The mine commenced production in 2013 and is operated by Barrick Kibali holds proven and probable gold reserves of 4.6 million ounces and measured and indicated gold resources of 7.1 million ounces. In March 2023, Barrick reported that "(f)or the fourth successive year exploration more than replaced the gold that Kibali mined in 2022 extending the mine’s Tier One production profile to 2033." Pueblo Viejo is located in the Dominican Republic where it is responsible for nearly 50 percent of the country's gold production the gold mine is run by Pueblo Viejo Dominicana a 60/40 joint venture between Barrick and Newmont Work at Pueblo Viejo is ongoing to convert 9 million ounces of measured and indicated resources to proven and probable reserves in an effort to extend the mine’s life to at least 2040 Lihir holds proven and probable gold reserves of 22 million ounces, and measured and indicated gold resources of 42 million ounces. In a recent investor presentation Newcrest states that "Lihir is entering its high grade phase," with the mining of the Kapit orebody set to begin in the 2026 fiscal year the Loulo-Gounkoto gold mine in Western Mali is an important contributor to the country's economy Barrick has an 80 percent interest in the complex while the State of Mali holds the remaining 20 percent Barrick says that a third underground mine at Gounkoto is set to commence ore production in the second quarter of 2023 The Loulo-Gounkoto gold mine holds proven and probable gold reserves of 6.7 million ounces and measured and indicated gold resources of 9.7 million ounces The Canadian Malartic mine is found in the Abitibi greenstone belt of Quebec and is the nation's largest gold mine Quebec is Canada's second leading gold-producing jurisdiction and Canada itself ranks as the world's third largest gold-producing country Commercial production began at the open pit Canadian Malartic mine in 2011 Yamana sold its stake in the Canadian Malartic to Agnico Eagle giving its joint venture partner 100 percent control of the world's ninth largest gold-producing mine and it said that going forward the Canadian Malartic mine and the Odyssey mine together will form the Canadian Malartic complex Agnico Eagle Mines also holds a 100 percent stake in the world's 10th largest producing gold mine Detour Lake was the company's biggest gold-producing mine in the northernmost portion of the Abitibi greenstone belt Agnico reports that Detour Lake has gold reserves of 15.03 million ounces with a mine life that extends to 2042 President and CEO Ammar Al-Joundi has stated the company's "focus will be on optimizing and growing Detour Lake and Canadian Malartic and on establishing a plan to capitalize on existing infrastructure with the potential to produce up to 500,000 ounces of gold per year by the end of the decade." Don’t forget to follow us @INN_Resource for real-time news updates hold no direct investment interest in any company mentioned in this article Get the trends and expert predictions you need to stay ahead of the markets Learn About Exciting Investing Opportunities in the Precious Metals Sector Melissa Pistilli has been reporting on the markets and educating investors since 2006 She has covered a wide variety of industries in the investment space including mining She helps to educate investors about opportunities in a variety of growth markets Melissa holds a bachelor's degree in English education as well as a master's degree in the teaching of writing Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data Educational Content Specialist Learn about our editorial policies. JAKARTA — The Indonesian government expects to take a controlling stake in the operator of the world’s biggest copper and gold mine this month even as sanctions it imposed for environmental violations threaten to hamstring the multibillion-dollar deal Arizona-based Freeport-McMoRan is expected to divest its decades-old majority stake in its Indonesian subsidiary the operator of the Grasberg mine in Papua province In testimony to the country’s parliament on May 30, Ignasius said the move, mandated under the country’s mining law would cut Freeport’s stake in PTFI to 49 percent although it will remain the mine’s operator through state-owned mining holding company PT Inalum The takeover has been valued as high as $8.1 billion Discussions between Freeport and PT Inalum have “reached the final stage,” Jonan said as reported by local media “We hope the whole acquisition process can be completed in June which is among the government’s requests to extend [Freeport’s operation].” Inalum CEO Budi Gunadi Sadikin told reporters in May that the main hurdle to the acquisition was the dumping of mining waste for which the government has imposed sanctions on the miner Budi said Freeport had “made breaches that need to be revised through the environmental audit,” Reuters reported on May 24 “The biggest issue is the issue of tailings — that has to be improved,” Sadikin said The sanctions on PTFI, imposed in October last year, stemmed from findings by the Indonesian state auditor that identified a wide range of irregularities in the company’s operations and contract These included indications of reckless mining An earlier review by the agency pegged the environmental damage from the company’s operations at 185 trillion rupiah ($13.1 billion) the Ministry of Environment and Forestry followed up with a pair of decrees ordering PTFI to overhaul its waste management within six months They include slashing toxicity levels at dumping sites and producing a strategic environmental impact assessment Freeport has balked at the conditions laid out saying they imposed “undue and unachievable restrictions” on Freeport’s basic operations Reuters also quoted local media as reporting that Adkerson “I am deeply concerned that these actions have the potential to derail the progress that all of us have worked so hard to achieve.” “The main point is that [Freeport] must fix all of this though we know it can’t all be done at one time,” Siti Nurbaya Bakar “We are giving them a transition period in which they can consult with the government [on the waste management].” The minister and officials from Freeport have met several times to discuss the decrees on the tailings management with the latest taking place in Jakarta on May 17 Siti said that particular meeting lasted almost three hours She said her office would continue to talk with Freeport officials was not as optimistic about the company being able to comply with the decrees “The new ministerial decrees are impossible to be implemented right now, and we are still trying to negotiate with the environment ministry to find a solution,” he said on May 24 as reported by local media The BPK audit that set off the sanctions and decrees over PTFI’s waste management practices also found that Freeport had used 4,536 hectares (11,208 acres) of protected forest area without obtaining the proper permits The National Commission on Human Rights (Komnas HAM), a state-funded body, said in March 2017 that PTFI had never compensated the indigenous people as the original stewards of the land where it operates despite neither side seeing eye to eye on the key issues Thousands of workers at the world’s largest copper and gold mine run by U.S.-based Freeport McMoRan in the Indonesian province of Papua have been instructed to remain on the company’s premises or risk being furloughed without pay amid an outbreak at the mine that has seen 56 employees test positive for COVID-19 Freeport announced the test results last week, telling reporters that the outbreak had been detected in mid-March after an employee tested positive for the disease prompting the firm to test 400 workers living in the same barracks and then sent into quarantine,” an underground worker at the mine told Mongabay by phone has emerged as one of the worst coronavirus clusters on the Indonesian part of the giant island of New Guinea Three hundred and five people in Papua and neighboring West Papua province have tested positive for the disease, with seven deaths, according to the national COVID-19 task force The two provinces have taken aggressive measures to stop the virus, imposing travel restrictions on most air and sea travel. The region is one of the remotest in Indonesia, with scant public health facilities and isolated indigenous communities who could be particularly vulnerable to the disease Indonesia as a whole has seen 930 coronavirus deaths Some countries, such as Peru, Mexico, Mozambique and Malaysia, have suspended or reduced production at mines to prevent the spread of the virus In April, Freeport closed a mine in New Mexico after three workers tested positive for COVID-19. It has also announced plans to cut its 2020 costs by 18% as copper prices plummet Despite calls to halt operations at its mine in Papua Freeport said operations would continue following redoubled health protocols such as requiring a body temperature check for every employee who wants to enter the company’s work area Richard Adkerson, the CEO of Freeport McMoRan, said last month that testing and screening activities at the Grasberg mine “are much more advanced than much of what we’re seeing today in communities in the United States.” Those who want to leave the company’s premises in the Papuan highlands must sign a form saying they understand they may not be able to return to work and may not be compensated during their absence Riza said employees were “free to choose” whether to stay or go but did not address the part about them not being paid “We are facing a dilemma,” the underground worker said “If we take a break and return to the city we have to sign a statement that means we are voluntarily resigning.” Around a million Indonesian workers have been furloughed due the pandemic, with hundreds of thousands more laid off, President Joko Widodo said on April 30 Energy and Mining Workers Union’s branch in Mimika said workers shouldn’t have to choose between their lives and their livelihoods He said he was aware of the furlough threat a chance to discuss the matter,” he said in a text message Noting that the Indonesian government recently acquired a 51% stake in Freeport’s Indonesian unit Aser called on operations at the mine to be suspended with workers receiving pay during the closure as Indonesia grapples with the coronavirus outbreak “The safety of workers is in jeopardy because we are forced to work in the midst of COVID-19,” he said in a statement So we have to be willing to work amid the coronavirus.” said Grasberg workers were facing a situation akin to “slavery.” noting that the 2009 Mining Act stipulates that mining business activities can be halted in the event of an epidemic said the province might shut down the mine if the situation worsened “We have asked [Freeoport] to conduct a rapid test for all workers we are going to review the trend,” he said by phone “If by that time there’s a spike in the case we are open to the option to halt the operation.” Grasberg isn’t the only enterprise in Papua where workers have had to choose between keeping their jobs and protecting their health which dominates the plantation sector in southern Papua threatening to fire workers who leave the company’s premises according to a company document seen by Mongabay The order is in effect for an indefinite period Workers are barred from returning home at the end of May for Idul Fitri the end of the Muslim holy month of Ramadan Multiple sources in the plantation told Mongabay that workers were complaining about the quarantine standards Some had refused to be quarantined because the company didn’t provide proper barracks “Two beds for one room,” a worker at the company’s operation in Papua told Mongabay by phone are being treated at a state-run hospital in the nearby town of Timika a member of the national COVID-19 task force stationed at Timika Hospital But the facility only has one pulmonologist The rest of the workers are being treated at Freeport’s own hospital The Freeport worker who spoke on condition of anonymity said that while management had provided employees with soap “It’s impossible we can take any social distance,” he said “Every morning we jostle to get into the bus to work just like the other normal days before the virus spread,” he said “We feel uncomfortable and confused,” he added Banner: The Grasberg mine in Papua. Image by Richard Jones/Flickr. FEEDBACK: Use this form to send a message to the author of this post Essential digital access to quality FT journalism on any device Complete digital access to quality FT journalism with expert analysis from industry leaders Complete digital access to quality analysis and expert insights complemented with our award-winning Weekend Print edition Terms & Conditions apply Discover all the plans currently available in your country See why over a million readers pay to read the Financial Times Copper miner Freeport Indonesia has restored operations at its huge Grasberg mine in Indonesia’s Papua region The company was forced to stop operation at its flagship mine in February after heavy rain and mud flows caused damaged at the facilities “At the moment operations at mining and our processing plant have returned to normal after the flood,” spokesperson Katri Krisnati said in a text message Chief executive Tony Wenas said in mid-February that a conveyor belt at Freeport’s underground mine was washed away in the floods Freeport-McMoRan Inc has cut its first-quarter copper sales forecast after the disruption at Grasberg (By Fransiska Nangoy; Editing by Ed Davies) Connecting decision makers to a dynamic network of information Bloomberg quickly and accurately delivers business and financial information 2018 at 12:58 AM EDTBookmarkSaveLock This article is for subscribers only.Freeport-McMoRan Inc has received a one-month extension to the license that allows it to operate the giant Grasberg copper and gold mine in Indonesia as the government said talks to transfer majority ownership in the mine are almost complete PT Freeport Indonesia’s special mining license director general for coal and minerals at the natural resources ministry said at a briefing in Jakarta on Wednesday The extension for Freeport’s local unit creates a window for sealing a broader deal that’ll allow Indonesia to take control of the world’s second-largest copper mine.