Freeport-McMoRan buys Duke Energy assets in Papua

New Orleans-based copper and gold miner Freeport-McMoRan Copper & Gold Inc. (FCX) announced Thursday that it had acquired for $78 million the 85.7 percent ownership interest in PT Puncakjaya Power (PJP) owned by affiliates of Duke Energy Corporation.

FCX said PJP is the owner of assets supplying power to FCX's Indonesian operations, including the 3x65 megawatt coal fired power facilities, diesel generating capacity and other project assets. The current operator will continue to operate the facilities pursuant to the terms of an existing operating agreement.

?The transaction will reduce FCX's total consolidated debt and is expected to be accretive to earnings and cash flows, with a net positive effect approximating $12 million per year,? said FCX in a statement.

FCX explores for, develops, mines and processes ore containing copper, gold and silver in Papua province through its 90.6 percent owned unit PT Freeport Indonesia. FCX smelts and refines copper concentrates at PT Smelting in Gresik, East Java and at Atlantic Copper in Spain. (robert)