Freeport announces insurance settlement
Tuesday, December 21 2004 - 11:55 PM WIB
New Orleans-based copper and gold miner Freeport-McMoRan Copper & Gold Inc. (FCX) said Tuesday insurers would pay US$125 million to settle claim related to October 2003 landslide at PT Freeport Indonesia's Grasberg mine in Papua province.
According to FCX, PT Freeport Indonesia's joint venture share of proceeds is expected to approximate $95 million. PT Freeport Indonesia received $20 million in proceeds during the third quarter 2004 and expects to receive the balance of the funds over the next 30 days. As a result of the settlement FCX expects to record a gain, net of taxes and minority interests, in its fourth quarter 2004 net income of approximately $48 million.
Rockslides at the Grasberg mine killed eight workers last October and caused the company to delay production at one of the world's largest gold and copper reserves. (alex)