Freeport-McMoRan 2011 Annual Report Download - page 12

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North America
Copper Sales
in billion lbs
2012e 2012e2011 2011
0.75
1.50 80
1.25
1.00 60
0.50
40
0.25 20
North America
Molybdenum Sales*
in million lbs
North America
FCX leads the North America metals industry in the production of copper and molybdenum. FCX
currently operates seven copper mines in the United States — Morenci, Bagdad, Sierrita, Saord and
Miami in Arizona, and Tyrone and Chino in New Mexico. FCX also conducts molybdenum mining
operations at the Henderson underground mine in Colorado. Molybdenum concentrates are also
produced at certain of FCX’s North America copper mines (primarily Sierrita, Bagdad and Morenci).
During 2011, FCX completed the ramp up of mining and milling rates at Morenci and mining
activities at Miami. During 2011, FCX also restarted mining and milling activities at Chino,
which is expected to produce approximately 200 million pounds of copper per year by 2014.
FCX is advancing a feasibility study to expand mining and milling capacity at Morenci to process
additional sulde ore identied through exploratory drilling.
Construction activities at the Climax molybdenum mine are substantially complete, and FCX
plans to commence production during 2012. FCX intends to operate the Climax and Henderson
molybdenum mines in a exible manner to meet market requirements.
North America’s consolidated copper sales totaled 1.2 billion pounds at an average realized price
of $3.99 per pound in 2011, compared to 1.1 billion pounds at an average realized price of $3.42
per pound in 2010. Consolidated molybdenum sales totaled 79 million pounds in 2011, compared
to 67 million pounds in 2012. FCX expects 2012 sales from North America to approximate
1.3 billion pounds of copper and 80 million pounds of molybdenum.
e typical U.S.-built
conventional automobile
contains approximately
50 pounds of copper. Hybrid
and electric vehicles can
use more than double that
amount in induction motors
that draw their power from
batteries, making the vehicles
up to 60 percent more fuel
ecient. Larger hybrid trucks
and buses equipped with
copper rotor motors reduce
fuel costs and emissions.
Connection Point
2011
Cash Unit Costs
Site Production & Delivery $ 1.78
By-product Credits (0.48)
Treatment Charges 0.11
Unit Net Cash Costs $ 1.41
(1) Includes copper reserves from Chino, Safford, Tyrone, Miami and Cobre.
* Includes sales of molybdenum produced at FCX’s
North and South America copper mines.
North America Unit Cash Costs
per lb of copper
North America Copper
Reserves by Mine
40.6 billion
consolidated lbs
33% Morenci
30 % Sierrita
21% Bagdad
16% Other(1)
OPERATIONAL OVERVIEW
Note: e=estimate.
10 | FREEPORT-MMR COPPER & GOLD INC.