Document 6588529

Th u r s d ay 3 0 , O c to b e r 2 0 1 4
News &
Report Analysis
Currency Market
Precious Metal
Base Metal
Energy Market
Global Supply
 Electrosteel moves SC over coal block
cancellation
 Tata Steel’s Canadian partner to cut jobs
 Anrak Aluminium optimistic of govt nod
for bauxite project
 Sesa Sterlite posts Rs 1,619-cr profit in 2Q
 Indiabulls plans to bid for coal blocks
2
Thursday 30, October 2014
Daily
MMR Landed Prices
London Metal Exchange : Wednesday 29, October 2014
Pr. Sell
(1)
Morning Session
Buy
Sell * (2)
Afternoon Session
Buy
Sell
Kerb
Change
(2) - (1)
Value
Stk(tns)
change
$/ton
Rs/ton
Copper Grade A
Spot
6859.50
6854.00
6855.00
6904.00
6905.00
6869.50
-4.5
1,62,675
MMR LP
4,54,396
3-mth
6800.00
6785.00
6785.50
6826.00
6827.00
6795.00
-14.5
1625
14-D MA
4,46,431
PP (HCL)
4,56,624
Average
10-days - 6725.80
20-days - 6731.30
30-days - 6750.20
Tin High Grade
Spot
19755.00
20145.00
20150.00
20169.00
20170.00
19866.00
395.0
9,115
--
--
3-mth
19760.00
20165.00
20170.00
20174.00
20175.00
19875.00
410.0
-25
--
--
--
--
Average
10-days - 19550
20-days - 19882.80
30-days - 20197.80
Lead
Spot
2019.00
2019.00
2020.00
2029.00
2030.00
2022.75
1.0
2,24,475
MMR LP
1,38,764
3-mth
2030.00
2034.00
2035.00
2040.00
2041.00
2034.00
5.0
-75
14-D MA
1,37,890
PP (HZL)
1,46,300
Average
10-days - 2004.60
20-days - 2039.30
30-days - 2049.20
Zinc Special High Grade
Spot
2252.50
2264.50
2265.00
2303.00
2304.00
2258.00
12.5
7,05,525
MMR LP
1,59,806
3-mth
2252.00
2260.50
2261.00
2297.00
2298.00
2256.00
9.0
-2700
14-D MA
1,57,997
PP (HZL)
1,69,200
Average
10-days - 2234.90
20-days - 2269.80
30-days - 2264.50
Aluminium
Spot
1990.50
2011.50
2012.00
2037.00
2038.00
1995.25
21.5
44,27,975
MMR LP
1,54,433
3-mth
1996.50
2013.50
2014.00
2033.00
2034.00
1996.00
17.5
-8475
14-D MA
1,51,263
PP (Nalco)
1,59,400
Average
10-days - 1961
20-days - 1930.40
30-days - 1929.80
Aluminium Alloy
Spot
2075.00
2075.00
2085.00
2083.00
2084.00
2074.00
10.0
26800
3-mth
2080.00
2080.00
2090.00
2089.00
2090.00
2080.00
10.0
0
Average
10-days - 2069
20-days - 2087
30-days - 2085.80
Nickel
Spot
15055.00
15575.00
15585.00
15689.00
15690.00
15484.00
530.0
3,80,946
--
--
3-mth
15135.00
15615.00
15625.00
15749.00
15750.00
15545.00
490.0
2082
--
--
-Copper
Aluminium
-01-Oct
25-Oct
Zinc
Lead
20-Oct
20-Oct
Average
10-days - 1512.50
20-days - 15786.30
30-days - 16204.50
Note: 1. MMR LP = MMR Landed Prices, excluding excise duty. 2. PP = Producer Prices ex-smelter, excl. excise
Minor Metals ($/LB)
Antimony
99.65%
9,600
Cadmium
99.80%
90.00
Cobalt HG Moly.oxide
99.80%
14.00
14.25
Tantalite
30% Ta2O5
92.00
Titanium Ferro-vana
Con. Ti02
650.00
24.90
Silicon
2,050
Week ended Avg of Steel Prices: 25/10/2014 (Incl. Excise duty)
Sponge Iron
Pig Iron
Mandi
29,600 HMS
33,400 CRP(LSLP)
Mumbai
30,000
33,000
Kolkata
29,600
-
Indicative Domestic Market Rates (Rs./kg)
Mumbai
29-Oct
Chennai
29,600
32,000
MS Ingots
Bhiwandi
38,200
Comex Copper (cents/lb)
Prev
Delhi
29-Oct
Prev
-510.0
-508.0
430.0
-
428.0
-
Alum Ingot
Zinc Slab
Lead Ingot
Tin Slab
Nickel (4x4)
Scrap
Copper Heavy
Copper Uten.
168.0
185.0
137.0
1,485.0
1,100.0
167.0
186.0
138.0
1,480.0
1,085.0
172.0
192.0
132.0
1,480.0
1,087.0
172.0
192.0
132.0
1,480.0
1,087.0
473.0
432.0
472.0
431.0
---
---
Copper Mixed
Brass Utensil
Brass Huny
Brass Sheet
Alum Utensil
-328.0
-343.0
137.0
-329.0
-341.0
134.0
415.0
-322.0
142.0
415.0
-319.0
142.0
Virgin Metals
Copper Pat
Copper W/Bar
Delhi
29,800
-
Oct'14
Nov'14
Dec'14
Rate
311.20
311.15
310.45
Change
0.1
0.4
0.4
Kanpur
38,000
Durgapur
34,200
Comex Al (cents/lb)
Rate
-
Change
-
Precious Metals : Indicative Rates
Metal
Gold Std
Silver
Gold
Silver
Gold
Silver
Market
Mumbai
Mumbai
London
London
Comex
Comex
Unit
Rs./10g
Rs./kg
$/tr.oz.
$/tr.oz.
$/tr.oz.
$/tr.oz.
29-Oct
27,400
38,500
1,223.5
17.20
1,224.3
17.21
Prev
27,520
38,700
1,229.3
17.18
1,227.8
17.19
orex: Oct 29, 2014 (Rs/Unit Currency)
Buy
USD
61.41
61.32
EURO
78.18
GBP
98.95
98.84
SGD
48.32
—
—
AUD
54.57
YEN
0.5681
0.5671
SFR
64.85
Sell
78.08
48.21
54.50
64.73
Buy
Sell
Customs Notified Rates: Oct 02, 2014 [Rs.(Imp/Exp)]: US$ 62.30/61.30;Pound Sterling 101.25/99.00;Euro 79.00/77.10
3
Thursday 30, October 2014
Daily
U.S. stocks closed with slight losses on
a significantly weaker yen and as participants
Wednesday, finishing off their lows of the
focused on the potential positives of the Fed's
session, after the Federal Reserve ended its
stance. "The market is relieved as the rates would
stimulative monthly bond-buying program
remain low for some time while seeing a recovery
and expressed confidence in U.S. economic
in the U.S. economy," said Nobuhiko Kuramochi, a
prospects. Major indexes were volatile following
strategist at Mizuho Securities in Tokyo.
the central bank's statement, with the S&P 500
Currency Market
down as much as 0.8 percent before pulling
back. Material shares were lower throughout
The dollar stayed on the front foot on
the session, a decline in Facebook pressured the
Thursday, hovering near 3-1/2 week highs
Nasdaq, but strength in energy and financial
against a basket of currencies after the Federal
shares helped the market recover. The Dow
Reserve surprised markets with a more hawkish
Jones industrial average fell 31.44 points, or
policy tone and signaled its confidence in the
0.18 percent, to 16,974.31, the S&P 500 lost
U.S. economic recovery. The dollar index, which
2.75 points, or 0.14 percent, to 1,982.3 and the
measures the U.S. currency against a basket of
Nasdaq Composite dropped 15.07 points, or
six major rivals, rose to 86.083, after touching
0.33 percent, to 4,549.23.
86.143, its highest level since October 6, in the
As a result, Asian stock prices declined on
wake of the Fed's announcement. The Fed
Thursday while US dollar currency surged to a
released a statement that underscored the
three-week high versus the yen after the U.S.
improving U.S. labour market, dismissing recent
Federal Reserve ended its massive quantitative
financial market volatility, European growth
easing
MSCI's
challenges and largely weak inflation outlook.
broadest index of Asia-Pacific shares outside
The dollar hovered near a three-week peak of
Japan .MIAPJ0000PUS was down 0.6 percent.
109.12 yen JPY= after surging nearly 0.7 percent
In a statement on Wednesday after a two-day
in light of the Fed's statements, while the
meeting, the Fed ended its quantitative easing
euro fetched $1.2624 EUR= after shedding 0.8
programme of bond purchases. At its peak, the
percent overnight.
programme,
as
expected.
programme pumped $85 billion a month into the
USD/INR - 29/10/14
financial system. "The Fed was widely expected
61.27
61.29
and looking ahead, we anticipate further gains
in the greenback," she said.
Tokyo's Nikkei .N225 bucked the trend in
Asia and rose 0.5 percent, taking heart from
USD/INR Overnight VAR
Data releases today
17:00
16:00
statement breathed new life into the U.S. dollar
15:00
61.37
14:00
New York, said in a note to clients. "The FOMC
13:00
61.35
9:00
61.33
managing director at BK Asset Management in
12:00
61.31
to their labour market assessment," Kathy Lien,
11:00
anyone anticipated such a significant upgrade
10:00
to end quantitative easing (QE) but barely
0.3443
Forecast
Previous
USD Advance GDP q/q
3.1%
4.6%
USD Unemployment Claims
277K
283K
Source : Mecklai Financial
4
Thursday 30, October 2014
Daily
6 mth
LIBOR
Major
Currencies
Today’s
Crosses
Spot
Cash
v/s INR
0.32
USD / INR
-
ATM Options (put/call)
0.15
Forward Rates v/s INR (Export/ Import)
October
November December
March
June
September
61.45/ 46
61.39/ 41
61.80/ 83
62.24/ 27
62.64/ 68
63.86/ 90
65.00/ 04
66.08/ 12
-
-
-
0.00/0.46
0.00/0.68
0.00/0.84
0.00/1.31
0.00/1.70
0.00/2.07
EUR / USD
1.2620
77.54/ 56
77.46/ 50
78.01/ 05
78.57/ 61
79.09/ 14
80.68/ 73
82.19/ 23
83.67/ 70
0.16
USD / JPY(100)
109.06
56.34/ 35
56.28/ 30
56.68/ 71
57.06/ 14
57.48/ 53
58.66/ 70
59.77/ 82
60.87/ 92
0.69
GBP / USD
1.5980
98.19/ 21
98.09/ 13
98.77/ 74
99.41/ 26
100.02/ 71
101.89/ 95
103.62/ 01
105.25/ 92
0.06
USD / CHF
0.9557
64.29/ 30
64.23/ 25
64.66/ 69
65.16/ 18
65.60/ 64
66.95/ 98
68.24/ 27
69.51/ 53
3.06
AUD / USD
0.8771
53.89/ 90
53.84/ 86
54.21/ 23
54.60/ 61
54.94/ 97
56.01/ 04
57.01/ 04
57.96/ 99
Source : Mecklai Financial
considerable time. The central bank has held its
Precious Metal
key rate at zero to 0.25 percent since 2008.
Gold traded near a three-week low as the
dollar strengthened after the Federal Reserve
ended its asset-purchase program. Holdings in
the largest exchange-traded product extended
declines to the lowest in six years. Bullion for
immediate delivery was at $1,213.07 an ounce
by 11:57 a.m. in Singapore from $1,212.15
yesterday, according to Bloomberg generic
pricing. The metal dropped to $1,208.50
yesterday, the lowest price since Oct. 8, as the
Bloomberg Dollar Spot Index rose the most in
four weeks.
to end monthly bond-buying, dismissed recent
turmoil in global financial markets and focused
on employment gains. Policy makers at the end
of a two-day meeting yesterday maintained a
commitment to keep borrowing costs low for a
Market Highlights - Gold (% change)
Gold (Spot)
Gold
(Spot -Mumbai)
Comex Gold
(Oct’14)
MCX Gold
(Oct’14)**
FOMC appearing more positive on the economic
outlook,” Daniel Hynes, senior commodity
strategist at Australia & New Zealand Banking
Group Ltd., wrote in a note today. “This elicited a
strong rally in the U.S. dollar and selling in gold.
Movement in the U.S. dollar over the next few
days could set the tone for commodities into
the year end.”
Gold for December delivery fell as much as
1.2 percent to $1,210.60 an ounce on the Comex
in New York before trading at $1,212.80. Futures
Fed officials, voting to proceed with plans
Gold
“Quantitative easing ends in the U.S., with the
Unit
Last
Prev.
day
as on October 29, 2014
WoW MoM
YoY
yesterday dropped to $1,208.20, the lowest
since Oct. 8.
Assets in the SPDR Gold Trust, the biggest
bullion-backed ETP, shrank for a second day to
742.40 metric tons yesterday, the least since
October 2008. In China, the largest consumer,
lower prices have spurred physical demand
as volumes for the Shanghai Gold Exchange’s
benchmark bullion spot contract rose to a three-
$/oz
1211.5
-1.32
-2.3
-0.9
-9.8
Rs/10
gms
26995.0
3.45
#N/A
1.9
-9.4
$/oz
1214.3
-0.82
-1.2
1.9
-9.7
Rs /10
gms
27079.0
-0.21
-1.5
0.5 -10.2
Source: Angel Broking
week high yesterday.
Base Metal
A price index of the six main LME metals
is heading for a second annual loss, the first
Daily
Thursday 30, October 2014
time that’s happened since the recession in
open interest is the lowest in 19 months for zinc
2007-2008. Evidence of a slowdown in China,
futures and down 10 percent for aluminum this
the world’s top metals user, is fueling concern
year.
that demand for raw materials will weaken.
A stronger US dollar kept the raw materials
This month, the International Monetary Fund
of base metals more expensive for buyers using
reduced its 2015 forecast of global growth.
other currencies. Besides, possible strikes at the
Investors are pulling out of industrial-metals
Grasberg mine in Indonesia and at the Antamina
funds at the fastest pace in 15 months, signaling
mine in Peru may disrupt 3.1 percent of world
increased concern that a faltering global
copper production. As a result, all base metals
economy will slow demand for everything from
at the LME declined. Copper dropped for the
cars to appliances.
first time in four days as the Federal Reserve’s
The withdrawals from industrial-metals
decision to end its bond-purchase program
ETPs this month were equal to 12 percent of
strengthened the dollar, reducing the appeal of
their market capitalization, more than any
commodities as an alternative investment. The
commodity group, after $22.2 million was pulled
metal retreated as much as 0.6 percent after
in September. The price index of the six main
closing yesterday at the highest in almost six
metals on the LME has fallen 4 percent since the
weeks
end of July, leaving the gauge down 0.3 percent
Copper for delivery
in three months on
this year. The ETP outflow halts a seven-month
the London Metal Exchange fell 0.5 percent to
period through July when investors poured
$6,778.25 a metric ton at 10:44 a.m. in Tokyo
$101.3 million into industrial metals, a bigger
after closing at $6,815 yesterday, the highest
percentage increase than any other commodity
since Sept. 19. In New York, copper futures for
group, data compiled by Bloomberg show.
December delivery slid 0.7 percent to $3.084 a
Indonesia’s ban on exports of unrefined ore
pound, while the January contract in Shanghai
from mines drove concern that supplies of
was little changed at 47,740 yuan ($7,807) per
tin and nickel would be squeezed, while an
tonne.
improving U.S. housing market brightened
demand prospects for copper wire and pipe.
Nickel tumbled 16 percent since the end of
July to $15,527 a metric ton on the LME today,
The outlook shifted after the IMF cut its
and copper fell 4.9 percent to $6,770 a ton.
growth forecast to 3.8 percent on Oct. 6, from
The Bloomberg Commodity Index of 22 raw
a July estimate of 4 percent. Supplies of copper,
materials slid 7.1 percent over the same period,
lead, tin and nickel will be in surplus this year,
while MSCI All-Country World Index of equities
Macquarie Group Ltd. said in an Oct 14. report.
dropped 2.5 percent. The Bloomberg Treasury
U.S. exchange-traded products backed by
Bond Index gained 1.8 percent.
the metals saw an outflow of $55 million this
Energy Market
month, the most since July 2013, data compiled
by Bloomberg show. Hedge funds have bet on
West Texas Intermediate retreated from a
lower copper prices for five weeks, the longest
one-week high after government data showed
stretch since April. London Metal Exchange
crude stockpiles rose as output surged to a
5
Thursday 30, October 2014
Daily
Market Highlights - Crude Oil (% change)
as on October 29, 2014
Crude Oil
Unit
Last Prev.
day
Brent (Spot)
$/bbl
87.3
1.6
0.6
-8.1 -19.4
Nymex
Crude (Sep ’14)
$/bbl
82.2
1.0
2.1
-9.7 -16.3
ICE Brent
Crude (Oct’14)
$/bbl
87.1
1.3
2.8
-10.2 -20.1
5083.0
2.0
1.6
-11.0 -16.1
MCX Crude
(Oct ’14)
WoW
MoM
YoY
yesterday. The European benchmark crude
traded at a premium of $5.10 to WTI, compared
with $4.92 yesterday.
Global Supply
OPEC's oil production is unlikely to change
much in 2015 and there is no need to panic at
Rs/
bbl
the crude price drop, OPEC's secretary general
Source: Angel Broking
said on Wednesday, adding to indications the
record high in the U.S., the world’s biggest oil
exporter group is in no hurry to cut output.
consumer. Brent slid in London. Futures fell
Abdullah al-Badri also said output of higher-
as much as 0.6 percent in New York. Crude
cost oil supplies such as shale would be curbed
stockpiles gained for a fourth week as production
if oil remained at around $85 a barrel, while
increased to 8.97 million barrels a day, the
the Organization of the Petroleum Exporting
fastest rate since January 1983, according to the
Countries enjoys lower costs and will see higher
Energy Information Administration. Supply and
demand for its crude in the longer term.
demand will return to equilibrium and OPEC
Oil's drop below the $100-mark, the level
members aren’t waging a price war, Secretary-
many OPEC members had endorsed, has raised
General Abdalla El-Badri said yesterday.
the question of whether OPEC will cut supply
“Expanding stockpiles are putting downward
when it meets in November. Badri said OPEC's
pressure on oil,” Kang Yoo Jin, a commodities
output was unlikely to change much next year,
analyst at Woori Investment & Securities Co.
adding to signs a decision to cut in November
in Seoul, said by phone today. “Oversupply
is unlikely.
concerns in the market are not easing because
News & Report
Analysis
OPEC isn’t making any comments so far on a
possible production cut.”
WTI for December delivery dropped as
much as 45 cents to $81.75 a barrel in electronic
trading on the New York Mercantile Exchange,
Electrosteel moves SC over
coal block cancellation
and was at $81.91 at 2:10 p.m. Seoul time. The
Electrosteel Castings Ltd has said that it has
contract climbed 78 cents to $82.20 yesterday,
filed a petition before the Supreme Court on
the highest close since Oct. 21. The volume of
the cancellation of allotment of a coal block.
all futures traded was about 31 percent below
The North Dhadhu coal block, situated in
the 100-day average. Prices have decreased 17
Jharkhand, was earlier allotted to Electrosteel
percent this year.
Castings as well as a few other investors for
Brent for December settlement declined
shared operations.
as much as 32 cents, or 0.4 percent, to $86.80
The company also said it was examining the
a barrel on the London-based ICE Futures
implication of the Ordinance, promulgated by
Europe exchange. The contract rose 1.3 percent
the Centre this month paving way for e-auction
6
7
Thursday 30, October 2014
Daily
in a statement to the Toronto Stock Exchange.
The restructuring will take place in the fourth
(October-December) quarter, it added.
NML has already begun trial shipping of ores
to Tata Steel’s European operations.
of coal blocks, on the company’s investment so
far made in the joint coal mining project.
Anrak Aluminium optimistic
of govt nod for bauxite
project
India's Anrak Aluminium is optimistic of
It had stated in a note that it did not make
securing government approval to mine bauxite
any fresh investments apart from the initial
in three to four months, a company official said
investments made on the coal block, which is
on Wednesday, possibly ending a three-year
yet to be made operational.
wait.
The ductile iron pipe maker reported net
"We are hopeful of getting approval in
profit of Rs. 12.78 crore in the July-September
three to four months," Hariharan Mahadevan,
quarter against Rs. 19.76 crore in the
president of projects at Anrak, told an industry
corresponding quarter last financial year.
conference in Singapore.
Tata Steel’s Canadian partner
to cut jobs
Canadian miner New Millennium Iron
Corporation (NML) has decided to downsize its
workforce by around 30 per cent.
company.
to produce 1.5 million tonne of bauxite, used to
make alumina which then goes into producing
aluminium.
April 2015, while the second phase will include
a smelter, Mahadevan said. Amrak is a joint
The company said it would implement the
“human resource restructuring plan”, which
included a workforce reduction of 12 fulltime employees, or around 30 per cent of the
company’s total strength of 38 people.
Through the job cuts, NML expects to save
C$1.52 million ($1.35 million) annually. However,
the severance packages would entail a one-time
cost, which is now being worked out.
company
of Andhra Pradesh, will have an annual capacity
Its alumina refinery should be in place by
Tata Steel has a 26.2 per cent stake in the
The
The mine, located in the southeastern state
said
the
restructuring
exercise was in response to the present difficult
commodity market.
“One-time charges associated with the
restructuring are currently being finalised,” it said
venture between Penna group of industries and
Ras Al Khaimah Investment Authority, according
to the company's Facebook page.
Vedanta
Ved
Ve
dant
da
d
ntaa
nt
Aluminium,
Alum
Al
umiiniu
um
ium
m,
m,
which
w
hich
hi
hich
ch
has
h
as
been
b
ee
en
Daily
Thursday 30, October 2014
struggling to source sufficient bauxite to feed
quarter were copper, aluminium and zinc
its 1 million tonne per year alumina refinery in
India businesses; while oil & gas production
Odisha state, is also hopeful of an improvement
in Rajasthan has normalised after completion
in the supply of bauxite.
of maintenance shutdown at the Mangala
Billionaire Anil Agarwal, the founder of
processing terminal," said Group CEO Tom
London-listed Vedanta Resources that controls
Albanese in a statement.
Vedanta Aluminium, said on Tuesday that
Indiabulls plans to bid for coal
blocks
the government of Odisha has assured him
of adequate supplies in the next three to four
months.
Indiabulls Power plans to bid for coal blocks
being auctioned and has no plans to bring in a
Sesa Sterlite posts Rs 1,619-cr
profit in 2Q
strategic partner or to sell stake as it hopes to
grow organically, CEO Rajiv Rattan said. "We are
Sesa Sterlite on Wednesday reported Rs
keen to bid in the new coal auctions as unlike
1,619 crore consolidated net profit in July-
before, we are now certain of a transparent and
September quarter this fiscal on the back of Rs
fair process of allotment," Rattan said. He further
19,448.14 crore net sales.
said the company had not taken a coal block but
ensured proper fuel supply, making it perhaps
the only listed power entity that was not hit by
the Supreme Court's order cancelling allocation
of coal blocks.
Rattan said speculation about selling stake
was baseless. "There is no truth to these talks, I
have put in Rs 360 crore of my own money into
the company, which is a clear signal that we are
not planning to sell or bring in any strategic
The metal, mining and oil and gas major
investor right now, I am clearly not looking
had reported Rs 2,394 crore net profit after tax,
at exiting this company or feel the need for a
minority interest and consolidated share in
currently," said Rattan.
strategic
gic investor currently,
Ratta
profit of associates in the same quarter last fiscal
while net sales were at Rs 25,170.66 crore, it said
in a BSE filing.
The NRI billionaire Anil Agarwal-led firm,
however, said the results are not comparable
as Sesa Sterlite was created in August last year
following a merger of Sterlite Industries and
several other entities of Vedanta group into Sesa
Goa last year in August.
"Main performance drivers during the
8
Thursday 30, October 2014
Daily
Workers plan strike at US
miner Freeport's Indonesia
site
Workers
at
Freeport-McMoRan's
giant
Indonesian copper mine plan to go on strike
for a month from next week, a union official
said on Monday, after the company failed to
make changes to local management following
a fatal accident. Earlier this month, hundreds of
angry protesters blocked access for two days
to the openpit area of the Grasberg complex,
where production was temporarily suspended
following the death of four workers on
September 27.
The remote copper mine is one of the largest
in the world and any prolonged disruption
could support prices of the metal , which have
fallen almost 10 percent this year.Three Freeport
unions have agreed to take strike action from
Nov. 6 until Dec. 6 to pursue demands including
the appointment of new managers, Albar
Sabang, a senior official at a Freeport union,
told Reuters. Sabang's union has about 9,100
members.
"The purpose of the strike is of course to
stop production so there will be pressure for
the Freeport Indonesia management to answer
to our demands," Sabang told Reuters by text
message.
Freeport, which employs around 24,000
workers, declined to comment on Monday.
About three-quarters of the workforce belong
to a union.
Relations between Freeport and the unions
have been strained in recent years following
a three-month strike in late 2011 as well as a
series of minor disputes. In addition to the four
workers killed in the collision involving a truck
last month, 28 people were killed after a tunnel
collapsed in May last year. Indonesia's mine
ministry investigated the Sept. 27 accident and
asked the company to introduce changes to
safety procedures and policies before allowing
open-pit mining to resume.Three weeks ago,
the Freeport Indonesia union warned of fresh
protests, blockades or strike action if workers'
safety concerns and other demands were
ignored. A union letter detailing the planned
strike was sent on Oct. 23 to Freeport's local
CEO, Rozik Soetjipto, the chief executive and
chairman of the Arizona-based firm and various
government officials.
9