16 Aug 2007

US miner Freeport-McMoran does not expect audit to alter its work contract

8:59 am on 16 August 2007

The US miner Freeport-McMoran says it does not expect a recent Indonesian audit on its massive mine in Papua to mean it has to alter its work contract.

A company official says the audit on Freeport's operations, which started in April 2006, has called on the firm to limit output to around 250,000 tonnes a day to minimise environmental damage.

The company is allowed to produce up to 300,000 tonnes of ore a day under its work contract.

The government auditors also recommended that Freeport process more copper within the country.

At present, Freeport processes 30 percent of its total ore output in Indonesia, partly due to limited smelting capacity within the country.

A spokesman for the miner says Freeport has been operating according to a working contract.