Workers at Freeport McMoRan Copper & Gold’s Grasberg mine in Indonesia plan to stage a strike in coming days after talks with the company failed to resolve a pay dispute , a move that could tighten global copper supplies and lift prices.
A strike would be the second in two months at Grasberg, the world’s third biggest copper mine that also has the biggest gold reserves, after an eight-day stoppage in July caused production losses and helped push copper prices to three-month highs.
The worker union’s deadline for a pay deal was Friday, though a Freeport spokesman said the U.S. firm still hoped to extend the talks to avoid another strike.
“The talks are deadlocked. The gap between what we wanted and what the company offered was enormous. They think a bonus is considered a rise, for us a pay rise is a pay rise,” union official Virgo Solossa told Reuters.