Protests against Freeport’s Grasberg mine turn deadly (March 27, 2006)

Vancouver — The latest in a continuing series of protests against Freeport-McMoRan Copper & Gold’s (FCX-N) Grasberg gold-copper mine, in the eastern Indonesian province of Papua, has escalated in violence, leading to four deaths during recent demonstrations.

Three police officers and a soldier were killed by protestors opposed to the mine and involved in the long-running separatist movement in the region.

Hundreds of people blockaded a main road outside of a university in the provincial capital of Jayapura. When police tried to break up the protest, a group of the demonstrators attacked the police officers and soldiers, bludgeoning four to death with rocks and knives. A large number of others were injured in the frenzy.

Grasberg is one of the world’s largest gold and copper producers with annual output of about 3.4 million oz. gold plus 1.7 billion lbs. (766,000 tonnes) copper. The massive, open-pit operation processes roughly 220,000 tonnes of ore per day with an average grade of about 1.7 grams gold per tonne and 1.2% copper. The operation also produces several million ounces of byproduct silver annually.

The Grasberg orebody hosts proven and probable reserves of 2.8 billion tonnes grading 1.07% copper, 0.92 gram gold per tonne and 4 grams silver per tonne.

The separatist movement in Papua province (previously called Irian Jaya), seeking to free itself from Jakarta’s rule, has long used opposition to Freeport’s mine as a focal point, citing limited benefits to locals and making accusations of environmental damage.

Civil unrest in Indonesia has also recently touched Newmont Mining (NMC-T, NEM-N), with the burning of its exploration camp on the island of Sumbawa, near its large Batu Hijau copper-gold mine. The company suspended all exploration work on the island following the incident.