JAKARTA Feb 20 Freeport-McMoRan Inc's
Indonesian unit has submitted a notification to Indonesia's
mining ministry describing breaches and violations of its
contract of work by the government, the company said on Monday.
Freeport said it hopes to resolve the dispute with the
government, but it also reserved the right to start arbitration
against the government and to seek applicable damages.
The company warned of "severe unfavorable consequences for
all stakeholders, including the suspension of capital
investments, a significant reduction in domestic purchases of
goods and services, and job losses for contractors and workers
as we are forced to adjust our business costs to match
constrained production," the company said in a statement.
Freeport has been negotiating with the Indonesian government
after halting its exports of copper concentrate due to new
mining rules. On Friday it said it could not meet contractual
obligations for copper concentrate shipments from the giant mine
following a five-week export stoppage.
(Reporting by Fergus Jensen and Wilda Asmarini; Writing by