Freeport reports lower copper, gold production

US giant miner Freeport-McMoRan Copper & Gold Inc. (FCX) on Wednesday that fourth quarter 2007 copper and gold production from its Papua mining, which is operated by its 90.9 percent-owned subsidiary PT.Freeport Indonesia (PT-FI) was significantly lower due to lower grade of ore processed.

FCX?s consolidated share of annual sales from Indonesia in 2008 is projected to approximate 1.2 billion pounds of copper and 1.2 million ounces of gold, the company said.

PT-FI expects to continue mining in a relatively low-grade section of the Grasberg open pit in the first half of 2008 and in a higher-grade section in the second half of 2008. Approximately 65 percent of 2008 copper sales and 75 percent of 2008 gold sales are estimated in the second half of the year. (alex)

Consolidated Indonesian Mining Operations	Fourth Quarter		Years Ended Fourth Quarter December 31,
	2007	2006	2007	2006
Copper (million of recoverable pounds):
Production	208	435	1,151	1,201
Sales	183	432	1,131	1,201
Average realized price per pound	$3.03	$2.88	$3.32	$3.13
Gold (thousands of recoverable ounces):
Production	147	514	2,198	1,732
Sales	124	508	2,185	1,736
Average realized price per pound	$807	$628	$681	$567a

a) Amount was $606 per ounce before a loss on redemption of FCX?s Gold-Denominated Preferred Stock, Series II.