Freeport revises 2004 Grasberg output estimate

New Orleans-based Freeport-McMoRan Copper and Gold (FCX) has revised the 2004 output estimate at its Grasberg complex in Papua province, which is being run by its Indonesian unit PT Freeport Indonesia (PTFI).

According to FCX's presentation material released recently, in terms of PTFI's shares, copper production in 2004 would decline to 1.0 billion pounds from the previous estimate of 1.4 billion pounds, while gold output would drop to 1.5 million ounces from 2.2 million ounces.

PTFI produced 1.29 billion pounds of copper and 2.46 million ounces of gold in 2003.

Grasberg production was halted due to material slippage from south wall to bottom of pit on October 9, 2003, and killed eight workers, followed by another slippage on December 12, 2004 when debris flowed in a section of Grasberg.

FCX said it would continue mining waste on south highwall of Grasberg and remove broken rock in first quarter of 2004, while in the second quarter it expected to resume mining of higher grade ore at Grasberg and complete accelerated mining of waste on south highwall.

FCX also said it planned to spend US$140 million for Papuan operation in 2004.

It added that as of December 2003, estimated recoverable reserves at Papuan mine in terms of PTFI's shares were 39.7 billion pounds of copper, 46.6 million ounces of gold and 116.8 million ounces of silver. (robert)