Freeport Indonesia?s gold copper and gold output down in Q1

US copper and gold miner Freeport- McMoRan Copper and Gold Inc (FCX) on Thursday said said that its Indonesian copper and gold mining unit PT Freeport Indonesia (PTFI) recorded sales of 296.1 million pounds of copper and 336,600 ounces of gold during the first quarter of 2002, compared with 333.4 million pounds of copper and 644,700 ounces of gold during the first quarter of 2001.

FCX said Copper sales were 11 percent lower and gold sales were 48 percent lower in the 2002 first quarter because of the mining of lower grade ore, as anticipated. Because of the nature of the Grasberg ore body, there are periods when the sequencing of mining results in production from ore that is economical, but lower than average in grade.

FCX said PTFI expected to return to higher grade ore and sales are expected to increase over the remainder of 2002. PTFI estimated quarterly copper sales to approximate 400 million pounds in the second quarter and 420 million pounds in the third and fourth quarters.

For 2002 quarterly gold sales, PTFI estimated 550,000 ounces in the second quarter, 800,000 ounces in the third quarter and 575,000 ounces in the fourth quarter. PTFI expects its sales for 2002 to approximate 1.5 billion pounds of copper and 2.3 million ounces of gold.

PTFI operates giant copper and gold mine in Indonesia's easternmost province of Papua.

FCX also reported to have increased stake at PTFI from 85.9 percent to 90.6 percent after it acquiring PT Nusamba Mineral Industry's 51 percent stake in PT Indocopper Investama which in turn owns 9.4 percent of PTFI?s share. Freeport acquires Nusamba?s stake by paying the latter?s bank loans. (alex)