Freeport-McMoRan 2013 Annual Report Download - page 12

Download and view the complete annual report

Please find page 12 of the 2013 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.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

SOUTH AMERICA MINING
FCX operates four copper mines in South America — Cerro Verde in Peru, and El Abra,
Candelaria and Ojos del Salado in Chile. In addition to copper, the Cerro Verde mine also
produces molybdenum concentrates, and the Candelaria and Ojos del Salado mines produce
gold and silver.
Construction activities associated with the large-scale expansion project at Cerro Verde are
in progress and advancing on schedule. The project is expected to expand the concentrator
facilities from 120,000 metric tons of ore per day to 360,000 metric tons of ore per day and
provide incremental annual production of approximately 600 million pounds of copper and
15 million pounds of molybdenum beginning in 2016.
FCX continues to evaluate a potential large-scale milling operation at El Abra to process
additional sulfide material and to achieve higher recoveries. Exploration results at El Abra have
identified a significant sulfide resource, which could potentially support a major mill project.
Consolidated copper sales from FCX’s South America mines of 1.33 billion pounds (at an
average realized price of $3.30 per pound) in 2013 were higher than 2012 sales of 1.25 billion
pounds (at an average realized price of $3.58 per pound), primarily reflecting higher ore grades
at Candelaria, partly offset by lower ore grades at Cerro Verde.
SOUTH AMERICA COPPER
RESERVES BY MINE
37.0 billion consolidated lbs
OPERATIONAL OVERVIEW
79% Cerro Verde
11% Candelaria and
Ojos del Salado
10% El Abra
Photo: Expanded stacking and leaching facilities at El Abra, Chile
10