Freeport to build world's largest underground mine after 2016
Friday, May 24 2013 - 02:12 AM WIB
Freeport McMoRan Gold and Copper Inc said that the open pit mine operation at its giant Grasberg gold and copper mine in Papua will end in 2016, after which the company will entirely switch into underground mine operation.
"We will complete mining from Grasberg open pit (mine) about at the end of 2016. After 2016, we will be mining totally through underground facility," visiting President and CEO of Freeport Richard C. Adkerson told a press conference on Thursday.
"... This would be the world?s largest underground mining operation," Adkerson added. He was optimistic that the plan would be smooth as the firm has had good safety record in terms of underground operation.
He was in Jakarta following a deadly incident at the Big Gossan underground mine training facility operated by local subsidiary PT Freeport Indonesia, where workers were killed when the tunnel collapsed on May 14.
Elsewhere, Adkerson said that production at the mine in Papua will be increased to 240,000 tons ores per day after 2016 from the current level of 220,000 tons of ores per day.
Richard said that the firm would spend a total of US$15 billion to expand the operation in the form of underground facility. The firm would spend $500 million to $700 million per year, he said.
Editing by Reiner Simanjuntak