• 3 hours Gunmen Kidnap Nigerian Oil Workers In Oil-Rich Delta Area
  • 5 hours Libya’s NOC Restarts Oil Fields
  • 6 hours US Orion To Develop Gas Field In Iraq
  • 3 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 3 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 3 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 3 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 3 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 3 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 3 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 4 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 4 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 4 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 4 days Venezuelan Output Drops To 28-Year Low In 2017
  • 4 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 4 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 4 days Kinder Morgan Delays Trans Mountain Launch Again
  • 4 days Shell Inks Another Solar Deal
  • 5 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 5 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 5 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 5 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 5 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 5 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 5 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 5 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 6 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 6 days Norway Grants Record 75 New Offshore Exploration Leases
  • 6 days China’s Growing Appetite For Renewables
  • 6 days Chevron To Resume Drilling In Kurdistan
  • 6 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 6 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 6 days Nigeria Among Worst Performers In Electricity Supply
  • 7 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 7 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 7 days Saudis To Award Nuclear Power Contracts In December
  • 7 days Shell Approves Its First North Sea Oil Project In Six Years
  • 7 days China Unlikely To Maintain Record Oil Product Exports
  • 7 days Australia Solar Power Additions Hit Record In 2017
  • 7 days Morocco Prepares $4.6B Gas Project Tender
Alt Text

This Copper Giant Is Buying Into An Unexpected Frontier

Copper giant Codelco is planning…

Alt Text

World Class Copper Auction Draws Major Interest

Peru’s mega Michiquillay copper is…

This World-Leading Copper Supplier Just Came Back Online

Copper

The workers’ strike at the world’s largest copper mine, Chile’s Escondida, shows no signs of stopping. With unions this week rejecting a request by management for a new round of negotiations.

But elsewhere things are looking up for copper supply. With another of the world’s largest mines resuming operations.

That’s the Grasberg mega-mine run by Freeport McMoRan in Indonesia. Where the company said yesterday it has resumed copper production after a stoppage of over a month.

Officials with Freeport Indonesia told Reuters that Grasberg has begun a staged restart of operations. With production of copper concentrate expected to steadily rise as the mine gets back up and running.

That comes after Freeport shut down Grasberg copper concentrate output on February 11. A consequence of ongoing disputes between the company and the government of Indonesia over contract terms for operations here.

At the time, the government had been threatening to enforce a ban on exports of unfinished copper — a regulation that’s been an on-again, off-again issue for Indonesia miners since 2014.

The government eventually relented and granted Freeport approval to continue exporting copper concentrate. But another issue came up when government officials pressed Freeport to convert its current mining license to a different type of contract.

Currently, Freeport operates under a “contract of work” with the Indonesia government — a type of agreement that provides for protection of the company’s investments in the country.

But the government now wants Freeport to switch to a “special mining license” — a new form of contract officials have been pushing for all major operations across the country.

Freeport said it will not make the change, arguing that the new mining licenses do not guarantee investment security. The company even threatened to take Indonesia to international arbitration over the issue.

That standoff was largely what prompted Freeport to shut down Grasberg operations last month. Which makes this week’s restart very interesting, given there has been no announced resolution to the licensing disagreement.

Watch over the next several days to see if Freeport and the government have struck on deal on licenses. If so, the details will give a lot of clarity on the coming direction for miners across Indonesia.

Here’s to the reasons why.

By Dave Forest




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News