Freeport cuts production target on Papua mine incident

US mining giant Freeport-McMoRan Copper & Gold Inc. announced on Wednesday it had to cut back production following ?a small scale? failure encompassing approximately 75,000 tonnes of material occurred at the Grasberg open pit operated by its 90.6% owned subsidiary PT Freeport Indonesia (PT-FI).

There were no injuries or property damage, the company said.

PT-FI?s mining and milling activities are continuing normally but access to the high grade section of ?7 South? will be restricted until remediation activities are completed and safe access to this mining area can be assured. PT-FI expects to complete remediation of the area and resume mining in the high grade ?7 South? section in October 2008.

As a result of the delayed access, the company expected PT-FI to cut 2008 production by 150 million pounds of copper and 200,000 ounces of gold.

This incident is not expected to affect PT-FI?s long-term mine plans significantly, the company said.

In the interim, PT-FI is mining ore from the DOZ underground mine and lower grade sections of the Grasberg open pit. The mine is located in Indonesia?s easternmost province of Papua.(alex)