Freeport 2009 Indonesian production target unchanged

US mining giant Freeport- McMoRan Copper & Gold Inc. (FCX) reported on Wednesday that its Indonesian copper and gold sales projection in 2009 remained unchanged despite production cut the company is undertaking in its other mines to cut costs amid falling commodities prices.

The company said 2009 sales from its 90.64 percent owned subsidiary PT Freeport Indonesia (PTFI) would be around 1.3 billion pounds of copper and 2.1 million ounces of gold.

FCX expects Indonesia sales of 1.1 billion pounds of copper and 1.1 million ounces of gold for 2008, compared with 1.1 billion pounds of copper and 2.2 million ounces of gold for 2007.

FCX is currently mining in a high-grade section which will continue through most of 2009, with the highest grades expected in the first nine months of the year, the company said.

The company, however, said it would revise 2009 operation plan.

?The revised operating plans incorporate operating costs reductions, including the effect of lower energy costs and favorable foreign exchange impacts and reduced capital spending with no changes in 2009 production plans,? it said.

PTFI operates the world?s largest copper and gold mine in terms of reserves at its Grasberg operations in Papua.

The company also said it would defer capital spending in the Grasberg district where practical and has reduced the 2009 budget by US$70 million.

PT-FI has several projects in progress throughout the Grasberg district, including developing its large-scale underground ore bodies located beneath and adjacent to the Grasberg open pit.

Other projects include the development of the high-grade Big Gossan mine, currently designed to ramp up to full production of 7,000 metric tons per day in 2011, and the continued development of the Common Infrastructure project, which will provide access to the Grasberg underground ore body, the Kucing Liar ore body and future development of the mineralized areas below the Deep Ore Zone (DOZ) mine. (alex)