Freeport allocates $18b to develop underground mine

PT Freeport Indonesia, the local unit of US-based giant Freeport-McMoRan Copper & Gold, has set aside up to US$18 billion to fund the development of its underground mine in Papua, Bisnis Indonesia daily reported on Tuesday.

Freeport Indonesia President Director Rozik B. Sutjipto was quoted as saying that the company was set to start developing the underground mine in 2017, when the open-pit Grasberg mine is projected to be no longer economical.

As such, Freeport plans to start developing the Deep Ore Zone (DOZ) mine in 2017-2020. ?Based on our calculation, production from DOZ will reach full capacity in 2021-2022. Particularly after 2017, Freeport?s production will suffer a decline as it is still at the stage of developing a new area (DOZ),? Rozik said. (*)