Freeport - McMoRan Copper & Gold Inc. . cut the number of employees at the Grasberg mine , Papua . Pruning is done following the conflict between Freeport and the government tax , call the CEO of the company on Thursday .
" We are reducing employee in a relatively small scale , " said CEO of Freeport - McMoRan Copper and Gold , Richard Adkerson , told The Wall Street Journal . " We hope this issue quickly resolved . Turns out it did not happen , " he said when interviewed by telephone .
Freeport , the world's largest copper producer , reducing the production of mining ore in Indonesia. About 60 % reductions that began in mid-January was a response to the imposition of a new tax on Indonesian exports of copper concentrate . Copper concentrate copper ore is crushed formation , which is usually processed into sheets of pure copper shiny red .
Since mid-January , at the unit level mills around 112,000 tonnes of copper concentrate ore per day . The amount is about half of the normal grinding ..
" We continue to work closely with several ministries . We believe this case will be resolved , just longer than expected , " said Adkerson .
He did not itemize how many employees are trimmed , of total 30,000 workforce .
According Adkerson , delay the completion of the election also triggered mat . However , Freeport seeks to avoid more cuts so as not to have a major impact on the Papua region . So far , Freeport contributes 90 % to the local economy , Adkerson said .
Grasberg unit located in the Sudirman Mountains area , Papua . The province is home to a separatist movement .
Greater job cuts would not be avoided , if the dispute is not resolved immediately .
" Currently , we maintain expenditure structure remains intact . However , our production is now only half of the capacity , " Adkerson said . "This can not go on . "WSJ
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