Freeport-McMoRan 2013 Annual Report Download - page 15

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INDONESIA MINING
Through its subsidiary, PT Freeport Indonesia, FCX mines one of the world’s largest copper
and gold deposits in the Grasberg minerals district in Papua, Indonesia.
The Grasberg minerals district has three operating mines: the Grasberg open pit, the
Deep Ore Zone underground mine and the Big Gossan underground mine. PT Freeport
Indonesia also has several projects in progress in the Grasberg minerals district related to the
development of large-scale, long-lived, high-grade underground ore bodies located beneath
and nearby the Grasberg open pit, including development of the Common Infrastructure, the
Grasberg Block Cave underground mine and the Deep Mill Level Zone ore body. In aggregate,
these underground ore bodies are expected to ramp up over several years to approximately
240,000 metric tons of ore per day following the transition from the Grasberg open pit,
currently anticipated to occur in 2017.
Consolidated sales from Indonesia mining of 885 million pounds of copper (at an average
realized price of $3.28 per pound) and 1.1 million ounces of gold (at an average realized price
of $1,312 per ounce) in 2013 were higher than 2012 sales of 716 million pounds of copper (at
an average realized price of $3.58 per pound) and 0.9 million ounces of gold (at an average
realized price of $1,664 per ounce), primarily reflecting higher ore grades and increased mill
rates. To date in 2014, PT Freeport Indonesia has operated at a reduced rate because of export
restrictions on international concentrate sales. FCX is working with Indonesian government
officials to resolve this matter.
INDONESIA COPPER
RESERVES BY MINE
30.0 billion consolidated lbs
Note: Underground and open-pit percentages
calculated using 100% basis reserves.
8% Open Pit
9 2% Underground
OPERATIONAL OVERVIEW
Photo: Grasberg open-pit mine in Papua, Indonesia 13