Freeport-McMoRan Copper & Gold Inc. Updates Status of PT-FI Operations
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported the following
update on the status of operations at PT Freeport Indonesia′s Grasberg
mining complex.
PT-FI continues to seek a mutually acceptable resolution to the ongoing
labor strike which commenced on September 15, 2011. The Company is
following the established Indonesian legal process, including pursuit of
a resolution through a labor court process, while continuing to seek to
negotiate with the union in good faith.
PT-FI is operating the Grasberg open pit mine and the DOZ underground
mine at reduced rates using non-striking employees and contractors.
Since October 22, 2011, milling operations have been temporarily
suspended pending repairs to concentrate pipelines damaged as a result
of civil unrest which has occurred during the course of the strike.
PT-FI has initiated repairs to the damaged pipelines but has not been
able to gain full access to the affected areas of the pipelines because
of road blockages by striking workers. PT-FI is working with local
authorities to restore access to the road and the pipelines so that
repairs can be completed and milling operations restarted.
As previously reported on October 19, 2011, FCX′s fourth quarter 2011
sales estimates of 915 million pounds of copper and 305,000 ounces of
gold included 185 million pounds of copper and 280,000 ounces of gold
from PT-FI (average daily production from PT-FI of 2 million pounds of
copper and 3,000 ounces of gold). These estimates were based on PT-FI
achieving fourth quarter mill throughput averaging approximately 175,000
tonnes per day (approximately 75% of normal rates). The quarter-to-date
average through October 31, 2011, including the currently on-going
suspension of milling and concentrate delivery operations since October
22, 2011, has been approximately 120,000 tonnes per day.
FCX will provide further updates on the status of operations and revised
estimates of fourth quarter production when access is restored and
repairs are completed.
FCX is a leading international mining company with headquarters in
Phoenix, Arizona. FCX operates large, long-lived, geographically diverse
assets with significant proven and probable reserves of copper, gold and
molybdenum. FCX has a dynamic portfolio of operating, expansion and
growth projects in the copper industry and is the world's largest
producer of molybdenum.
The company's portfolio of assets includes the Grasberg minerals
district, the world's largest copper and gold mine in terms of
recoverable reserves; significant mining operations in the Americas,
including the large-scale Morenci and Safford minerals districts in
North America and the Cerro Verde and El Abra operations in South
America; and the Tenke Fungurume minerals district in the DRC.
Additional information about FCX is available on FCX's website at 'www.fcx.com.?
Cautionary Statement.This press release contains
forward-looking statements in which FCX discusses its potential future
performance.Forward-looking statements are all statements other
than statements of historical facts, such as those statements regarding
projected ore grades and milling rates, projected production and sales
volumes, projected unit net cash costs, projected operating cash flows,
projected capital expenditures, exploration efforts and results, mine
production and development plans, the impact of deferred intercompany
profits on earnings, liquidity, other financial commitments and tax
rates, the impact of copper, gold, molybdenum and cobalt price changes,
potential prepayments of debt, future dividend payments and potential
share purchases.The words 'anticipates,? 'may,? 'can,? 'plans,?
'believes,? 'estimates,? 'expects,? 'projects,? 'intends,? 'likely,?
'will,? 'should,? 'to be,? and any similar expressions are intended to
identify those assertions as forward-looking statements.
FCX cautions readers that forward-looking statements are not
guarantees of future performance and its actual results may differ
materially from those anticipated, projected or assumed in the
forward-looking statements.Important factors that can cause
FCX's actual results to differ materially from those anticipated in the
forward-looking statements include commodity prices, mine sequencing,
production rates, industry risks, regulatory changes, political risks,
the potential effects of violence in Indonesia, the resolution of
administrative disputes in the Democratic Republic of Congo, weather-
and climate-related risks, labor relations, including the resolution of
labor negotiations and strikes in Indonesia and Peru, environmental
risks, litigation results, currency translation risks and other factors
described in more detail under the heading 'Risk Factors? in FCX's
Annual Report on Form 10-K for the year ended December 31, 2010, filed
with the U.S. Securities and Exchange Commission (SEC) as updated by our
subsequent filings with the SEC.
Investors are cautioned that many of the assumptions on which our
forward-looking statements are based are likely to change after our
forward-looking statements are made, including for example commodity
prices, which we cannot control, and production volumes and costs, some
aspects of which we may or may not be able to control. Further, we may
make changes to our business plans that could or will affect our
results. We caution investors that we do not intend to update our
forward-looking statements notwithstanding any changes in our
assumptions, changes in our business plans, our actual experience or
other changes, and we undertake no obligation to update any
forward-looking statements more frequently than quarterly.
Freeport-McMoRan Copper & Gold Inc.
Financial Contacts:
Kathleen
L. Quirk, 602-366-8016
or
David P. Joint, 504-582-4203
or
Media
Contact:
Eric E. Kinneberg, 602-366-7994
