Freeport launches Internet copper concentrate auction

PT Freeport Indonesia (PT-FI) has launched its first Internet auction of copper concentrate, offering a 10,000-tonne parcel for shipment in the first or second quarter of 2001.

``We are very encouraged by the results of this initial auction...We want to discuss with our customers ways to further improve this service, but these initial results are very positive and show that this is a viable tool for the future,'' William Collier, Vice President, Communications, of PT-FI parent Freeport-McMoRan Copper & Gold Inc (NYSE:FCX), told Reuters.

PT-FI's opening auction price was 16.85 cents (US) per pound combined smelting and payable copper refining charge. The sale was due to close at 1300 GMT on Wednesday.

``PT-FI expects its sales of copper concentrate via the internet auction to be efficient, competitive and transparent,'' he said, though he added that the actual participants and the final winner would remain anonymous.

PT-FI has annual copper concentrate sales of around 2.5 million tonnes from its Grasberg mining and milling complex in Irian Jaya (Papua), Indonesia.

Spot sales were expected to be less than five percent of that total this year, Collier said.

The company expects to sell spot material via its Internet site at www.copperconcentrate.com on a periodic basis. The next auction is set for November 8.

``The auction is open to all those in the industry actively involved in the trading or purchasing of copper concentrates,'' Collier said.

"Those pre-qualified to participate include both smelter and trader companies familiar to PT-FI. (*)