Grasberg mining complex in 2015. Photographer: Dadang Tri/Bloomberg Photo by Dadang Tri / Bloomberg

(Bloomberg) — A halt in production at the giant Grasberg copper mine in Indonesia looks set to strain the fractious relationship between miner Freeport-McMoRan Inc. and its host nation, at a time when the Jakarta government was already looking to take greater control.

Freeport declared force majeure on contracted supplies on Wednesday, two weeks after about 800,000 tons of mud flooded underground tunnels. Two workers were killed, while five more remain missing. The US-listed company slashed its production guidance, dragging its shares down 17% and pushing copper futures to the highest level in more than a year.

Grasberg has long been a flashpoint as Jakarta tries to gain a greater say

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