Violence has been escalating in and around Indonesia’s gold and copper mining industry. The Associated Press reported, “Deadly ambushes at the world's largest gold mine likely stem from rivalries between Indonesian police and military forces who compete for millions in illegal profits for protecting the industry, analysts said.”
The attacks have been going on for just over a week now. Three people are dead, and at least nine are wounded.
The mine is run by Freeport-McMoran, an American company. Not only is this mine the largest in the world, but Freeport-McMoran is the world’s largest copper mining company.
The AFP reported that Freeport spokesman Mindo Pangaribuan said the company had asked hundreds of workers to remain at home.
"They are those who live in the lower part of the area in Timika and have to use the road on which the attacks occurred to reach the mining site in Tembagapura," Pangaribuan said.
Although it is not known who is responsible for the attacks, Indonesian authorities are blaming Papuan separatist guerrillas. Papuan separatists want independence for the Papuan and West Papuan provinces of Indonesia.
Still, according to the AFP, “A commander for the Free Papua Movement (OPM) guerrillas has reportedly denied involvement, although the separatists' armed wing is a disjointed group that acts locally with little central control.”
The New York Times reported that Indonesia’s defense minister, Jowono Sudarsono, said that it is possible that illegal miners are behind the attacks.
Freeport, which employs some 20,000 workers in the area, said that the attacks have not harmed production.
Sara Nunnally, Taipan Publishing Group’s international correspondent, has been following various international mining stories. Sara wrote recently, “$122.5 billion in mining mergers and acquisitions have taken place so far this year. That’s way down from the $596.8 billion in 2007 before the crash and burn, but things might start picking up. Metals prices are beginning to rebound a bit, even as credit is still hard to get.”
Sara said that this sets up a scenario where some companies “can buy up assets and operations, and even whole companies, for pennies on the dollar.”
Suggesting that mergers and acquisitions should continue this year, Sara offered some ways that investors can positions themselves to benefit.
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