Freeport's Q1 copper, gold production down, partial mining on Grasberg resumed
Wednesday, April 21 2004 - 02:37 AM WIB
The decrease in production was due to lower ore grades and reduced mill throughput as PTFI focused its efforts on restoring safe access to the higher-grade ore areas in its Grasberg open-pit mine following the fourth-quarter 2003 slippage and debris flow events.
PT-FI PRODUCTION AND SALES
| First Quarter | ||
| 2004 | 2003 | |
| Copper (000s of recoverable pounds): | ||
| Production | 107,100 | 388,800 |
| Sales | 105,400 | 392,000 |
| Average realized price per pound | $1.34 | $0.73 |
| Gold (recoverable ounces): | ||
| Production | 125,300 | 579,600 |
| Sales | 123,800 | 583,900 |
| Average realized price per ounce | $411.42 | $341.55 |
"During the first quarter of 2004, PT-FI's ore was sourced from its Deep Ore Zone (DOZ) underground mine, which averaged 45,400 metric tons of ore per day, and from low grade material in the open pit. Mill throughput averaged 151,800 metric tons of ore per day compared with 238,200 metric tons of ore in the first quarter of 2003. Mill throughput, which will vary depending on ore types being processed, is expected to average approximately 210,000 metric tons per day in the balance of 2004," FCX said.
FCX said PTFI had resumed operations in the key ore areas of the Grasberg pit while continuing waste removal activities.
FCX said a portion of the higher grade ore previously forecast to be mined in 2004 is expected to be deferred to future periods, resulting in plans to produce significant volumes of copper and gold in the last half of 2004 and in 2005. Ore grades are expected to increase during the year resulting in a significant portion of 2004 metal sales occurring in the second half of the year. Ore grades and volumes are expected to be strong in 2005. (alex)