Freeport-McMoRan 2009 Annual Report Download - page 100
Download and view the complete annual report
Please find page 100 of the 2009 Freeport-McMoRan annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
98 -9,,769;4J4V9HU*677,9.63+05*
(UU\HS9LWVY[
$VDUHVXOWRIWKHVDOHWKHRSHUDWLQJUHVXOWVRI3',&KDYHEHHQ
UHPRYHGIURPFRQWLQXLQJRSHUDWLRQVDQGUHSRUWHGDVGLVFRQWLQXHG
RSHUDWLRQVLQWKHFRQVROLGDWHGVWDWHPHQWVRIRSHUDWLRQV6HOHFWHG
ÀQDQFLDOLQIRUPDWLRQUHODWHGWRGLVFRQWLQXHGRSHUDWLRQVIRUWKH\HDU
HQGHG'HFHPEHUIROORZV
5HYHQXHV
2SHUDWLQJLQFRPH
3URYLVLRQIRULQFRPHWD[HV
,QFRPHIURPGLVFRQWLQXHGRSHUDWLRQV D
H 0UJS\KLZPUJVTLH[[YPI\[HISL[VUVUJVU[YVSSPUNPU[LYLZ[ZVMTPSSPVU
&DVKÁRZVIURPGLVFRQWLQXHGRSHUDWLRQVIRUWKH\HDUHQGHG
'HFHPEHUKDYHQRWEHHQVHSDUDWHO\LGHQWLÀHGLQWKH
FRQVROLGDWHGVWDWHPHQWVRIFDVKÁRZV
NOTE 20. Business Segments
)&;KDVRUJDQL]HGLWVRSHUDWLRQVLQWRÀYHSULPDU\GLYLVLRQV³1RUWK
$PHULFDFRSSHUPLQHV6RXWK$PHULFDFRSSHUPLQHV,QGRQHVLD
PLQLQJ$IULFDPLQLQJDQG0RO\EGHQXPRSHUDWLRQV1RWZLWKVWDQGLQJ
WKLVVWUXFWXUH)&;LQWHUQDOO\UHSRUWVLQIRUPDWLRQRQDPLQHE\PLQH
EDVLV7KHUHIRUH)&;FRQFOXGHGWKDWLWVRSHUDWLQJVHJPHQWVLQFOXGH
LQGLYLGXDOPLQHV2SHUDWLQJVHJPHQWVWKDWPHHWFHUWDLQWKUHVKROGV
DUHUHSRUWDEOHVHJPHQWV%HJLQQLQJLQWKH6LHUULWDPLQHLVQR
ORQJHUDUHSRUWDEOHVHJPHQWEHFDXVHLWGLGQRWPHHWDQ\RIWKH
WKUHVKROGV$FFRUGLQJO\)&;KDVUHYLVHGLWVVHJPHQWGLVFORVXUHVIRU
WKH\HDUVHQGHG'HFHPEHUDQGWRFRQIRUPZLWKWKH
FXUUHQW\HDUSUHVHQWDWLRQ
)XUWKHUGLVFXVVLRQRIWKHUHSRUWDEOHVHJPHQWVLQFOXGHGLQ)&;ҋV
RSHUDWLQJGLYLVLRQVDVZHOODV)&;ҋVRWKHUUHSRUWDEOHVHJPHQWV³
5RG5HÀQLQJDQG$WODQWLF&RSSHU6PHOWLQJ5HÀQLQJ³IROORZV
5HIHUWR1RWHIRULQIRUPDWLRQRQ)&;ҋVRZQHUVKLSLQWHUHVWV
North America Copper Mines. )&;KDVVL[RSHUDWLQJFRSSHU
PLQHVLQ1RUWK$PHULFD³0RUHQFL6LHUULWD%DJGDG6DIIRUGDQG
0LDPLLQ$UL]RQDDQG7\URQHLQ1HZ0H[LFR7KH1RUWK$PHULFD
FRSSHUPLQHVLQFOXGHRSHQSLWPLQLQJVXOÀGHRUHFRQFHQWUDWLQJ
OHDFKLQJDQG6;(:RSHUDWLRQV$ PDMRULW\RIWKHFRSSHUSURGXFHGDW
WKH1RUWK$PHULFDFRSSHUPLQHVLVFDVWLQWRFRSSHUURGE\)&;ҋV5RG
5HÀQLQJRSHUDWLRQV7KH1RUWK$PHULFDFRSSHUPLQHVGLYLVLRQ
LQFOXGHV0RUHQFLDVDUHSRUWDEOHVHJPHQW
Morenci. 7KH0RUHQFLRSHQSLWPLQHORFDWHGLQVRXWKHDVWHUQ
$UL]RQDSULPDULO\SURGXFHVFRSSHUFDWKRGHVDQGFRSSHUFRQFHQWUDWHV
7KH0RUHQFLPLQHSURGXFHGDSSUR[LPDWHO\SHUFHQWRI)&;ҋV1RUWK
$PHULFDFRSSHUGXULQJ
Other Mines. 2WKHU PLQHVLQFOXGH)&;ҋVRWKHURSHUDWLQJ
VRXWKZHVWHUQ86FRSSHUPLQHV³6LHUULWD%DJGDG6DIIRUG0LDPL
DQG7\URQH³DQGLWVVRXWKZHVWHUQ86FRSSHUPLQHVWKDWDUH
FXUUHQWO\RQFDUHDQGPDLQWHQDQFHVWDWXV,QDGGLWLRQWRFRSSHUWKH
6LHUULWDDQG%DJGDGPLQHVSURGXFHPRO\EGHQXPFRQFHQWUDWHDVD
E\SURGXFW
South America Copper Mines. )&;KDVIRXURSHUDWLQJFRSSHU
PLQHVLQ6RXWK$PHULFD³&HUUR9HUGHLQ3HUXDQG&DQGHODULD2MRV
GHO6DODGRDQG(O$EUDLQ&KLOH7KHVH RSHUDWLRQVLQFOXGHRSHQSLW
DQGXQGHUJURXQGPLQLQJVXOÀGHRUHFRQFHQWUDWLQJOHDFKLQJDQG
6;(:RSHUDWLRQV7KH6RXWK$PHULFDFRSSHUPLQHVGLYLVLRQ
LQFOXGHV&HUUR9HUGHDVDUHSRUWDEOHVHJPHQW
Cerro Verde.7KH&HUUR9HUGHRSHQSLWFRSSHUPLQHORFDWHGQHDU
$UHTXLSD3HUXSURGXFHVFRSSHUFDWKRGHVDQGFRSSHUFRQFHQWUDWHV
,QDGGLWLRQWRFRSSHUWKH&HUUR9HUGHPLQHSURGXFHVPRO\EGHQXP
FRQFHQWUDWHDVDE\SURGXFW7KH&HUUR9HUGHPLQHSURGXFHG
DSSUR[LPDWHO\SHUFHQWRI)&;ҋV6RXWK$PHULFDFRSSHUGXULQJ
Other Mines. 2WKHUPLQHVLQFOXGH)&;ҋV&KLOHDQFRSSHUPLQHV
³&DQGHODULD2MRVGHO6DODGRDQG(O$EUD,QDGGLWLRQWRFRSSHUWKH
&DQGHODULDDQG2MRVGHO6DODGR PLQHVSURGXFHJROGDQGVLOYHUDV
E\SURGXFWV
Indonesia. ,QGRQHVLDPLQLQJLQFOXGHV37 )UHHSRUW,QGRQHVLDҋV
*UDVEHUJPLQHUDOVGLVWULFW37 )UHHSRUW,QGRQHVLDSURGXFHVFRSSHU
FRQFHQWUDWHVZKLFKFRQWDLQVLJQLÀFDQWTXDQWLWLHVRIJROGDQGVLOYHU
Africa. $IULFDPLQLQJLQFOXGHVWKH7HQNH)XQJXUXPHFRSSHUDQG
FREDOWPLQLQJFRQFHVVLRQVLQWKH.DWDQJDSURYLQFHRIWKH'5&7KH
7HQNH)XQJXUXPHPLQHLQFOXGHVRSHQSLWPLQLQJOHDFKLQJDQG
6;(:RSHUDWLRQV,QDGGLWLRQWRFRSSHUWKH7HQNH)XQJXUXPHPLQH
SURGXFHVFREDOWK\GUR[LGH&RSSHUFDWKRGHSURGXFWLRQFRPPHQFHG
LQ0DUFKDQGWKHÀUVWFRSSHUFDWKRGHZDVVROGLQVHFRQG
TXDUWHU7KHFREDOWSODQWDQGVXOSKXULFDFLGSODQWZHUH
FRPPLVVLRQHGLQWKLUGTXDUWHU
Molybdenum. 7KH0RO\EGHQXPVHJPHQWLVDQLQWHJUDWHGSURGXFHU
RIPRO\EGHQXPZLWKPLQLQJVXOÀGHRUHFRQFHQWUDWLQJURDVWLQJDQG
SURFHVVLQJIDFLOLWLHVWKDWSURGXFHKLJKSXULW\PRO\EGHQXPEDVHG
FKHPLFDOVPRO\EGHQXPPHWDOSRZGHUDQGPHWDOOXUJLFDOSURGXFWV
ZKLFKDUHVROGWRFXVWRPHUVDURXQGWKHZRUOGDQGLQFOXGHVWKH
ZKROO\RZQHG+HQGHUVRQPRO\EGHQXPPLQHLQ&RORUDGRDQGUHODWHG
FRQYHUVLRQIDFLOLWLHV7KH+HQGHUVRQXQGHUJURXQGPLQHSURGXFHV
KLJKSXULW\FKHPLFDOJUDGHPRO\EGHQXPFRQFHQWUDWHVZKLFKDUH
W\SLFDOO\IXUWKHUSURFHVVHGLQWRYDOXHDGGHGPRO\EGHQXPFKHPLFDO
SURGXFWV7KLVVHJPHQWDOVRLQFOXGHVDVDOHVFRPSDQ\WKDW
SXUFKDVHVDQGVHOOVPRO\EGHQXPIURPWKH+HQGHUVRQPLQHDVZHOO
DVIURP)&;ҋV1RUWKDQG6RXWK$PHULFDFRSSHUPLQHVWKDWSURGXFH
PRO\EGHQXPDVDE\SURGXFW ,QDGGLWLRQDWWLPHVWKLVVHJPHQW
URDVWVDQGRUSURFHVVHVPDWHULDORQDWROOEDVLV7ROODUUDQJHPHQWV
UHTXLUHWKHWROOLQJFXVWRPHUWRGHOLYHUDSSURSULDWHPRO\EGHQXP
EHDULQJPDWHULDOWR)&;ҋVIDFLOLWLHVIRUSURFHVVLQJLQWRDSURGXFWWKDW
LVUHWXUQHGWRWKHFXVWRPHUZKRSD\V)&;IRUSURFHVVLQJLWVPDWHULDO
LQWRWKHVSHFLÀHGSURGXFWV7KH0RO\EGHQXPVHJPHQWDOVRLQFOXGHV
)&;ҋVZKROO\RZQHG&OLPD[PRO\EGHQXPPLQHLQ&RORUDGRZKLFK
KDVEHHQRQFDUHDQGPDLQWHQDQFHVWDWXVVLQFH
Rod & Refining. 7KH5RG5HÀQLQJVHJPHQWFRQVLVWVRIFRSSHU
FRQYHUVLRQIDFLOLWLHVORFDWHGLQ1RUWK$PHULFDDQGLQFOXGHVDUHÀQHU\
WKUHHURGPLOOVDQGDVSHFLDOW\FRSSHUSURGXFWVIDFLOLW\7KHVH