Violence Halts Indonesian Gold Mine

TIMIKA, Indonesia—Freeport-McMoRan has suspended operations at its massive gold and copper mine in eastern Indonesia due to fighting among employees, the company and union officials said Sunday.

Operations were suspended on Thursday because some workers who took part in a strike were committing acts of violence and intimidation against supervisors and workers who didn't strike, Freeport spokesman Ramdani Sirait said.

Some 8,000 unionized employees walked off their jobs for four months last year demanding pay hikes. They ended their strike in December after receiving a 37 percent raise and improved benefits.

"We are experiencing work interruptions in connection with our efforts to resume normal operation at our mine in Indonesia," Sirait said in a text message.

He said the company is working with local authorities and union officials to resolve the issue.

Union official Juli Parorongan said both sides were to blame for the violence, in which several workers were injured.

Parorongan said the company's decision to suspend production has forced more than 12,000 workers at the Grasberg mine to stop working.

"It is very excessive," Parorongan said of the halt, which he said was unnecessary. "Everything can be resolved without halting production."

Grasberg in troubled Papua province is one of the world's largest gold and copper mines. It has experienced frequent violent protests by workers, while activist groups have complained of alleged pollution and unfair distribution of profits.

Freeport McMoRan Copper & Gold holds just over 90 percent of the Grasberg mine and the rest is owned by the Indonesian government.