Freeport to add investment in Papua mines

Freeport McMoran Copper & Gold Inc planned to add another US$4.8 billion to investment around its Grasberg copper and gold mine in Papua in the next 15 years, Investor Daily reported on Monday..

 

The funds, that would be spent at around US$100 – US$340 million per annum, would be used to finance the development of infrastructure and underground mining areas Kucing Liar and DOM.

 

Mindo Pangaribuan, the company’s spokesperson, disclosed that Freeport should prepare underground mines as it expects to end open-pit mining activities in  2015.

 

Elsewhere, Minsiter of Energy and Mineral Resources Purnomo Yusgiantoro said his office had yet to receive report on the additional investment. He noted that before Freeport started to develop new mines, the company should push its operation to meet the production target of 300,000 tons per day.

 

As of December 2006, Grasberg mine still holds an estimated 2.8 billion of ore reserves and the company plans to extract 230 million tons this year.  (*)