Freeport-McMoRan 2011 Annual Report Download - page 19

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Africa
Copper Sales
in billion lbs
Africa
Cobalt Sales
in million lbs
Copper has been the
benchmark for electrical
conductivity and is critically
important in computer
technology. Copper is used
in the most powerful
computer chips to promote
faster operating speeds
and to reduce heat and
power consumption.
2011
Cash Unit Costs
Site Production & Delivery $ 1.57
By-product Credits (0.58)
Royalties 0.08
Unit Net Cash Costs $ 1.07
Africa Unit Cash Costs
per lb of copper
Africa Copper
Reserves
8.4 billion
consolidated lbs
Africa
FCX operates the Tenke Fungurume (Tenke) copper and cobalt mine in the Katanga province of
the Democratic Republic of Congo.
e milling facilities at Tenke have been performing above capacity and mining rates have been
increased to enable copper production to ramp up to approximately 290 million pounds of copper
per year. FCX is undertaking a second phase of the project, which includes optimizing the current
plant and increasing capacity. As part of the second phase, FCX plans to expand the mill rate to
14,000 metric tons of ore per day and construct related processing facilities that would target the
addition of approximately 150 million pounds of copper per year. Construction activities for the
project are underway and are targeted for completion in 2013.
FCX continues to engage in drilling activities, exploration analyses and metallurgical testing to
evaluate the potential of Tenke’s highly prospective minerals district. ese analyses are being
incorporated into future plans to evaluate opportunities for expansion.
Africa’s consolidated copper sales totaled 283 million pounds at an average realized price of $3.74
per pound in 2011, compared to 262 million pounds at an average realized price of $3.45 per
pound in 2010. Africa’s consolidated cobalt sales totaled 25 million pounds at an average realized
price of $9.99 per pound in 2011, compared to 20 million pounds at an average realized price of
$10.95 per pound in 2010. FCX expects 2012 sales from Africa to approximate 290 million pounds
of copper and 25 million pounds of cobalt.
OPERATIONAL OVERVIEW
2012e 2011
200
300 30
20
10
100
2012e 2011
Connection Point
Note: e=estimate.
2011 ANNUAL REPORT | 17