Q+A attacks at Freeport mines

JAKARTA, July 24 (Reuters) – A series of shootings this month near Freeport-McMoRan Copper & Gold Inc’s (FCX.N) massive Grasberg mine in Indonesia has raised concerns over the possible impact on the mine’s operations.

Grasberg has the world’s largest recoverable reserves of copper, accounting for nearly 40 percent of Freeport’s total copper reserves of 93 billion pounds, and the largest gold reserves.

Freeport said the shootings have not affected production.

Papuan police said on Friday that two people had been killed in shooting-related incidents this month: Australian technical expert Drew Grant and an unnamed security guard. At least 10 people were wounded, including seven police.

Here are some questions and answers about the situation:

WHAT’S BEHIND THESE ATTACKS?

Probably money.

With its vast natural resources — copper, gold, timber — Papua has long been regarded as a honeypot, and Freeport is Indonesia’s top tax contributor, paying $1.2 billion in royalties and other taxes in 2008. Read More