Freeport-McMoRan Inc (NYSE:FCX) stock climbed after the Indonesian government extended Newmont Mining Corp (NYSE:NEM)‘s export permit. It is reported that the latter assured the government that it would build a smelter with Freeport, only after which it received the export permit. The Indonesian government had earlier signaled that Newmont might not be able to renew its export permit if it fails to reach an agreement with Freeport. However, after receiving assurances from the company, the government has decided to extend the renewal by six months.
Workers’ protest continues to fourth straight day
Meanwhile, Freeport-McMoRan Inc (NYSE:FCX) continues to face protests from workers, who have blocked an access road to its mine. The union officials have confirmed that the protesting workers have kept the road to the Grasberg site blocked, which has halted the copper production at the mine. As per the union officials, the production at the mine came to a halt right from the first day of such protests. While the demonstrations by the workers could be troublesome for Freeport-McMoRan Inc (NYSE:FCX), but halt in production will help the benchmark prices of copper to move up. The copper prices have been down by nearly 9% this year alone.
The workers have been protesting outside Freeport-McMoRan Inc (NYSE:FCX)’s site for the last four days. These workers are upset over the settlement reached by the company with other employees at the previous dispute. At present, more than 50 workers are participating in the protest and are supported by outsiders. The company has failed to reach any agreement with the protestors so far. An Asia-based commodity trader said that the blockade has not yet impacted the market, but production halt could reflect in the prices sooner or later.
The stock of Freeport-McMoRan Inc (NYSE:FCX) extended gains by more than 4.50% to $18.23 during the previous day’s trade.