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    Papuan strike halts world's biggest gold mine

    TIMIKA, Indonesia (AP) — A few computer keystrokes were enough to get Simon Windesi and his friends riled up about the low wages a global mining giant pays them in this distant part of Indonesia.

    After years of toiling at Freeport-McMoRan's gold and copper mine in easternmost Papua province, many still get just $1.80 an hour. Last week, a strike of the mine's 10,000 employees brought operations to a standstill.

    "That's a 10th what the company pays workers in other countries!" Windesi said after a quick Internet search. "And this is their biggest profit-maker. Their production costs are the lowest. How does that make sense?"

    The arrival of the digital age in this far-flung corner of Indonesia, where tribesmen still live a near-Stone Age existence in dense jungles and rugged mountains, has raised miners' awareness of their working conditions.

    They started the strike July 4 while renegotiating contracts and protesting the dismissal of six union leaders at Grasberg, the world's biggest gold mine by known reserves.

    Within days, the sooty kilometer-wide gash in the otherwise lush Puncak Jaya mountain range was all but abandoned.

    Gray piles of ore stood untouched. Trucks had stopped ferrying copper and gold concentrate to the port. And cargo ships, empty, had no place to go.

    Sinta Sirait, vice president of PT Freeport Indonesia, said management and union officials reached an agreement late Monday. The strike was to end Wednesday, and Freeport and the union would open talks for a new contract on July 20, she told reporters.

    "We need everyone to get back to work as quickly as possible," Sirait told reporters. "Many sites are filling up with water. We have to get them dried out."

    Indonesia has had a long, complicated relationship with Freeport — a powerful player in the world markets for gold, copper and molybdenum — and Papua, its most remote province, both geographically and politically.

    Earlier this decade, Freeport admitted it was paying the Indonesian military and police to handle security operations at Grasberg — a source of of ongoing controversy as the rugged Papua region is home to a decades-long low-level guerrilla war that has left more than 100,000 people dead, many at the hands of Indonesia's security forces.

    Because foreign journalists and human rights workers are barred from entering the province, allegations of abuse are almost impossible to confirm. But video clips of soldiers laughing as they torture suspected separatists, burning their genitals, have in recent months found their way to YouTube.

    Months after Gen. Suharto seized power in a 1965 coup, Jim Moffett, Freeport's chairman, reached out to the dictator, forming what was to become a close friendship and eventually winning the right to explore for gold and copper.

    Freeport, now based in Phoenix, Arizona, pumped $175 million into Papua to build a Western-standard road, pipelines, an airstrip and a new, first-class mining town — all of it to serve the mining operation.

    The Grasberg mine helped bolster Suharto's corrupt and often bloody regime until his 1998 ouster and, even today, remains one of the country's biggest sources of income, helping shield it from outside criticism.

    It generates more than $2 billion in taxes, royalties and dividends every year, according to data provided by the University of Indonesia's Economic and Social Research Institute.

    Locals complain, however, they have seen little benefit, pointing to environmental damage caused by mine tailings pumped into the Aghawagon River and its tributaries.

    Some of the mine employees interviewed by The Associated Press argue that ethnic Papuans should make up a larger part of the Grasberg work force. Of the 20,000 employees, around two-thirds are brought in from Java, Sumatra and other Indonesian islands.

    Many in the province of nearly 3 million people remain desperately poor and ancient tribal ways still pervade life. Men wear nothing but feathers in their hair and hollowed-out gourds that cover their penises.

    They hunt with bows and arrows and live in villages ringed by thatched huts, reachable only by foot or small aircraft.

    In the last five years, Internet access has improved dramatically, especially in bigger cities like Timika and Jayapura, providing many with their first direct link to the outside world.

    People read company reports and newspaper articles, post YouTube videos and join in chatroom discussions.

    Windesi, 43, and his friends say that has helped raise awareness among the mine's workers about their low pay.

    "We believe this mine helps finance Freeport's other operations," said Herman Sirakoie, 29, who last week joined thousands of others workers in a half-day march from company's mining town, Tembagapura, to Timika.

    Dozens collapsed from dehydration and exhaustion along the way, he said, compelling the company to send 60 buses to pick them up.

    "We just want to know why we're getting less than workers at other Freeport companies," said Sirakoie, who usually spends his day loading gold and copper concentrates onto cargo ships for export.

    ___

    Online:

    Freeport http://www.fcx.com/

    Striking workers: http://tinyurl.com/66ssq74

     

    11 comments

    • Thomas  •  10 mths ago
      The most valuable asset of any company is its workers. Care for them and they care for the company. Mistreat them and they mutiny. Corporate greed (like human greed) knows no bounds. Perhaps the workers will be treated fairly...perhaps not. We can only pray.
      • Brian 10 mths ago
        That's just business, it happens everyday. Just like manufacturing going to the third world countries for low wages. As far as I can tell they are not slaves and have the right to decide if they want to work for that wage. If they do not then the demand will increase the wage if it is needed. $10 an hour might be like $100 somewhere else.
      • pdc 10 mths ago
        the company will also prey
    • JustinT  •  10 mths ago
      Sirakoie asks, "We just want to know why we're getting less than workers at other Freeport
      companies?"
      ...
      Because, until today you never protested and demanded more.

      With little doubt, Sirakoie's government leaders are bribed handsomely to look the other
      way. These government leaders could not care less about their indigenous brothers or the
      environment that their ancestors lent them for the benefit of their descendents.

      The sky would be the limit on the price of gold, if these same deposits were under the
      homes of Wall Street executives.

      P.S.: Coincidentally, anytime Yahoo! posts garner support for the little guy, Yahoo magically replaces that headline web address with a new headline web address to shake such comments. Dear Yahoo!, may the flees of one thousand camels infest your armpits.
    • shaun l  •  10 mths ago
      FreePort McMoran....uttter scum.....they back tinpot regimes, support murder, and pollute the planet like no one else

      Freeport McMoran...killers, of people and planets
    • A Yahoo! User  •  10 mths ago
      Leaching ponds are nasty and environmentally unsound.
    • Schmitty  •  10 mths ago
      The ugly truth is, Freeport has worked with Suharto to employ 10,000 by doing most of the work by hand.
      Bring in some of Freeports large equipment, do it all by machine, and 100 people will do the same work as 10,000.
      And those 100 workers will get 20 bucks an hour and freeport will save $16000 per hour in labor costs. Be careful what you wish for.
      • Chris-Delon 10 mths ago
        After living in Africa for 3 years. I was required by local Governments to do things with Labors and not Machines. Only if I gave the Government 10% and control of a Machine training program was i able to make any changes.
      • craig 10 mths ago
        bring in the same machines that have taken the US jobs away.
    • Teddy Bear  •  10 mths ago
      I am not pro union in the US today but here is a good example of where it takes a union to help the workers make a decent living and it is the right thing to do.
    • Im comin Lizbeth  •  10 mths ago
      maybe the owners of the mine should be hauled in for corruption big surprise they are hq'd in arizona
    • Lost Time  •  10 mths ago
      Greedy workers! How are the upper management fellows supposed to feed pizza with gold flakes on top to their children? Or provide breast implants to their illegitimate girlfriends? These greedy workers are ruining the world. How dare they want a healthy wage! If I were the bosses of the mine I'd pay the military to take care of them. They need their gold back-scratchers.
    • Sheila  •  10 mths ago
      they should all get free gold crowns on all their teeth! that would be 238 million times 20 teeth/person...they'd all have dazzeling smiles, envy of the bros. over here...
    • richer  •  10 mths ago
      Indonesia has over 238 million people, it is the world's fourth most populous country, and has the world's largest population of Muslims. Plenty of manpower = cheap labor.
    • Decarlos Davenport  •  10 mths ago
      Come on this is an Arzonia company, why should they care about indonisha, they do the same thing in TEXAS, Arizona, Pennasylvania these are carpet bagger's pure and simple
      the love there employees as dump as possiable which allows them to do any thing they want to.
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