Global
Grasberg : in the firing line
Labour , political and social problems are hampering production at the world ’ s largest gold mine , writes Leon Louw .
Grasberg , the largest gold mine in the world , is still grappling with labour problems after a destructive and violent strike paralysed production last year .
Grasberg , also a copper and silver producer , is owned by PT Freeport Indonesia ( PT-FI ), the local subsidiary of US mining company Freeport McMoRan . PT-FI operates in the remote highlands of the Sudirman Mountain Range in the province of Papua , Indonesia , which is on the western half of the island of New Guinea .
More than 4 200 workers were fired in July 2017 after going on strike when PT-FI refused to negotiate over a furlough ( temporary leave ). Recently , the National Commission on Human Rights in Indonesia has found that the sacking of the workers was a violation of human rights and is recommending their reinstatement . The commission ’ s recommendation to the President of Indonesia reads : ‘ The commission recommends PT-FI to reinstate all workers ( both PT-FI employees , privatised and contractors / subcontractors ) affected by furlough and pay all losses incurred by the policy .’
The commission concluded that in the case of the dismissals there is a human rights violation , particularly with the right to gain prosperity .
The commission also conveyed ‘ the importance of a follow-up response on the recommendation for the fulfilment of the right to welfare related to the right to life as well as the right to survive for the citizens guaranteed in Article 36 paragraph ( 1 ) and Article 9 paragraph ( 1 ) Act No39 of 1999 on Human Rights .’
Fighting for control
PT-FI , which employs thousands of permanent and contract workers , is in protracted negotiations with the government of Indonesia over control of the Grasberg mine . The government wants a 51 % stake in the mine and suspended PT-FI ’ s export licence to force the company to divest shares . According to the union IndustrALL , the termination of workers ’ contracts are part of the PT FI ’ s negotiating strategy with the government , and a strategy to reduce direct employment and increase the use of precarious work .
IndustriALL affiliate , the Chemical , Energy and Mines Workers Union ( CEMWU SPSI PTFI ), represents workers at Grasberg . According to a press release by IndustriALL , sent to Mining Mirror , safety is another big concern at Grasberg . In October 2017 there was a fatal incident , resulting in the death of one contract worker ,
[ 8 ] MINING MIRROR JANUARY 2018