Labor Strike at Indonesian Mining Giant to End

Posted July 11th, 2011 at 2:25 pm (UTC-5)
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Officials at a giant U.S.-owned gold and copper mine in Indonesia's Papua province say they have reached a deal to end a weeklong labor strike.

Freeport McMorRan says miners are likely to return to work this week, cutting short a strike that was expected to continue until mid-month. Under the deal, the company says, it has agreed to begin negotiating with a miners' union on pay.

About 8,000 miners, who earn $1.50 an hour, walked off the job July 4, to protest the firing of six workers and to demand pay comparable to wages paid Freeport miners in other countries.

Reuters news agency says the company also agreed not to penalize union leaders who organized the strike.

The Freeport mine, one of the world's largest copper producers, also sits atop some of the world's richest known gold reserves. It is the largest single taxpayer to the Indonesian government, having paid on average more than $1 billion a year to the Jakarta government since 1991.