Freeport reports higher production, sales from Papua mine
Thursday, April 26 2007 - 12:31 AM WIB
US mining giant Freeport-McMoRan Copper & Gold Inc. (FCX) reported on Wednesday that its Indonesian cooper and gold mining unit PT.Freeport Indonesia (PTFI) booked higher first-quarter 2007 production and sales volumes compared with the first quarter of 2006, primarily because of higher ore grades.
PTFI's share of sales totaled 417.1 million pounds of copper and 946.5 thousand ounces of gold, exceeding previous estimates reported in January 2007 of 400 million pounds of copper and 850 thousand ounces of gold, primarily because it mined certain sections of high-grade ore previously expected to be mined in future periods.
FCX's Consolidated Indonesian Mining Operations |
Q1 2007 |
Q1 2006 |
| Copper (000s of recoverable pounds): | ||
| Production | 467.6 | 221.3 |
| Sales | 417.1 | 225.2 |
| Average realized price per pound | $3.09 | $2.43 |
| Gold (recoverable ounces): | ||
| Production | 1,074.7 | 461.8 |
| Sales | 946.5 | 472.5 |
| Average realized price per pound | $654.79 | $405.54 |
In the first quarter of 2007, copper ore grades averaged 1.21 percent and recovery rates averaged 91.0 percent, compared with 0.72 percent and 82.5 percent for the first quarter of 2006. Gold ore grades averaged 2.01 grams per metric ton (g/t) and recovery rates averaged 87.8 percent in the first quarter of 2007, compared with 0.92 g/t and 80.6 percent for the first quarter of 2006. Mill throughput, which varies depending on ore types being processed, averaged 228,500 metric tons of ore per day in the first quarter of 2007, compared with 216,800 metric tons of ore in the first quarter of 2006.
Production from PTFI's Deep Ore Zone (DOZ) underground mine averaged 49,200 metric tons of ore per day in the first quarter of 2007, representing approximately 22 percent of mill throughput.
FCX's consolidated share of annual sales from Indonesia in 2007 is projected to approximate 1.1 billion pounds of copper and 1.8 million ounces of gold, including approximately 300 million pounds of copper and 575.0 thousand ounces of gold in the second quarter.
At the Grasberg mine, the sequencing in mining areas with varying ore grades causes fluctuations in the timing of ore production, resulting in varying quarterly and annual sales of copper and gold. Approximately 65 percent of PTFI's copper sales and 85 percent of PTFI's gold sales in 2007 are expected in the first half of the year. The achievement of these sales estimates will depend, among other factors, on the achievement of targeted mining rates, the successful operation of PT-FI production facilities, the impact of weather conditions at the end of fiscal periods on concentrate loading activities and other factors. Grasberg operated at reduced mining and milling rates during a four-day period from April 18 - April 21 as a result of peaceful protests by certain workers regarding benefits. The protests ended on April 21 with an agreement on a framework for minimum wages for its workers and Grasberg has returned to normal operations. The impacts to production were not significant. (alex)