Pursuant to the new labor agreement, PT-FI agreed to increase base wages by 24% in the first year and 13% in the sec-ond year of the agreement, equivalent to a 40% increase over two years on a com-pounded basis. In addition, PT-FI agreed to provide improved benefits, including enhancements to housing allowances, edu-cational assistance and retirement savings plans. PT-FI also agreed to pay a one-time signing bonus equivalent to three months of base wages. The parties agreed that future wage negotiations would be based on living costs and the competitiveness of wages within Indonesia.

Milling operations at PT-FI’s Grasberg mine had been suspended since October 22, 2011, pending repairs to concentrate and fuel pipelines damaged as a result of civil unrest during the course of the strike. The repairs to the damaged pipelines were substantially complete as of mid-December, and PT-FI had begun to ramp-up milling operations. Shipments of con-centrate were expected to be limited until full operations were restored.