Newmont Gold Mine Workers in Indonesia Start Strike (Update1)

Aug. 2 (Bloomberg) -- Workers at the Indonesian unit of Newmont Mining Corp., the largest U.S. gold producer, began a strike today at the Batu Hijau gold and copper mine.

Production at the mine, Indonesia's second-largest copper producer, hasn't been affected by the strike which began at midnight when about 200 to 300 workers downed tools, Kasan Mulyono, a spokesman at PT Newmont Nusa Tenggara said by phone from the mine on Indonesia's Sumbawa island. The company will make a further statement on the mine later today, he said.

Workers at Newmont Nusa Tenggara planned to stop work for nine days from today, Investor Daily Indonesia reported July 30, citing Zaenuddin Wanden, deputy head of the workers union at the company. The mining company is responsible for the direct employment of more than 7,000 people, according to its website.

The strike plan came after Newmont Nusa Tenggara said it would take legal action against a ruling by the manpower office of West Nusa Tenggara province ordering the company to pay 126 billion rupiah ($14.1 million) of overtime to workers covering the period from June 2008 to June 2010, the Investor Daily said.

Newmont and the workers will continue to hold talks this week after they failed to reach agreement at a meeting on the weekend, Mulyono said.

Newmont Nusa Tenggara is partly owned by a venture belonging to PT Bumi Resources' and three local administrations in West Nusa Tenggara.