Creditors to extend Freeport?s credit facilities maturity

US based gold and copper miner Freeport-McMoRan Copper & Gold Inc. (FCX) announced Monday that it received commitments from its bank group to extend the maturities of its bank credit facilities to December 2005.

According to the company?s statement, aggregate commitments under the amended credit facilities would initially total US$760 million, increasing to US$954 million if FCX is called on to perform in March 2002 under its guarantee of a US$253.4 million loan of PT Nusamba Mineral Industri.

PT Nusamba Mineral Industri is an Indonesian investor indirectly holding a 4.7 percent ownership in FCX's principal operating unit, PT Freeport Indonesia.

The amendment is conditioned on FCX's sale of $300 million of convertible notes, the negotiation and execution of definitive agreements and satisfaction of other conditions. JP Morgan is agent for the lenders in FCX's bank credit facilities.

?The amended bank credit facilities together with our strong cash flows from operations and other financing arrangements form a comprehensive basis for the financing of FCX's operations and debt maturities over the next several years. These refinancing arrangements demonstrate the quality and strength of our Grasberg mine and its long-lived copper and gold reserves.'' Said James R. Moffett, FCX?s Chairman and CEO.

FCX explores for, develops, mines and processes ore containing copper, gold and silver in Indonesia, and smelts and refines copper concentrates in Spain and Indonesia. (alex)