Freeport's production up in Q4, fell for the year
Friday, January 19 2001 - 04:00 AM WIB
Giant copper and gold mining company PT Freeport Indonesia (PTFI), a subsidiary of American Freeport-McMoRan Copper & Gold Inc (FCX) reported an increase in its 4th quarter of 2000.
PTFI said in its release recorded a production of 429.8 million pounds of copper and 708,000 ounces of gold for the fourth quarter of 2000, compared to 374,9 million pounds and 553,000 ounces respectively for the same period last year. The company attributed the increase from higher grades and recovery rate.
However, the company reported significant decrease in output for 2000 compared to 1999. Copper and gold production fell respectively from 1,428 million pounds and 2,379,100 ounces in 1999 to 1,388.1 million pounds and 1,899,500 ounces in 2000.
In May 2000 the government ordered PTFI to cut its production level to 200,000 tons of copper and gold ore per day following the collapse of its Wanagon tailing disposal site. In December the government allowed PTFI to resume its normal production following a review of a comprehensive study by PTFI and outside consultants led by a team from the Institute of Technology of Bandung.
PTFI said it remained the world's lowest cost copper production with average net cash production cost including gold and silver credits, of US$0.09 per pound of copper for the forth quarter of 2000 and US$0.23 per pound for the year.
For 2001, FCX estimated aggregate production at Grasberg mining complex would approximate1.6 billion pounds of copper and 3.1 million ounces of gold. The improvement of gold grade and sales in 2001, the company said, would be expected to significantly enhance FCX's profitability in 2001. At current price, the incremental gold sales would produce incremental revenues of US$ 125 million for PTFI.
FCX also expected to spend some US$215 million in 2001 in capital expenditure.
Exploration at PTFI's Grasberg mineral district yielded additional proved and probable reserve of 2.7 billion pounds of copper and 4.5 million ounces of gold.
According to the release, PTFI and giant mining company Rio Tinto entered into a joint venture in Grasberg, of which the latter had right for 40 percent in future production from reserves above those reported at December 31, 1994. As of December 31 2000, net of Rio Tinto's share, PTFI's share of reserves was 38.9 billion recoverable pounds of copper and 50.3 million recoverable ounces of gold. (alex)