Freeport-McMoRan 2004 Annual Report Download - page 10

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Background photo:
฀Copper฀cathode฀shipping฀operations฀at฀the฀Atlantic฀Copper฀smelter฀in฀Huelva,฀Spain.
50%
22%
28%
PT Freeport Indonesia
Concentrate Sales
2005e Sales: 2.7 million dry metric tons
e = Estimate
Third Party Smelters
Atlantic Copper
PT Smelting
PT฀Smelting,฀Indonesia’s฀first฀and฀only฀copper฀smelter,฀in฀Gresik,฀
East฀Java.
The฀product฀of฀our฀PT฀Freeport฀
Indonesia฀mining฀and฀milling฀operations฀in฀the฀
Indonesian฀province฀of฀Papua฀is฀sold฀in฀the฀form฀of฀
copper฀concentrate.฀We฀extract฀ore฀from฀our฀Grasberg฀
open-pit฀and฀Deep฀Ore฀Zone฀underground฀mines฀and฀
process฀it฀at฀our฀mill฀facility,฀essentially฀separating฀
the฀material฀containing฀copper฀and฀gold฀from฀the฀rest฀
of฀the฀mined฀ore.฀Our฀copper฀concentrate฀is฀sold฀to฀
smelters฀and฀refineries฀around฀the฀world,฀including฀
two฀smelters฀in฀which฀we฀have฀ownership฀interest.฀Our฀
investment฀in฀smelters฀serves฀an฀important฀role฀in฀our฀
concentrate฀marketing฀strategy.฀Through฀downstream฀
integration,฀we฀assure฀placement฀of฀a฀significant฀portion฀
of฀our฀concentrate฀production.฀Atlantic฀Copper,฀S.A.฀
is฀our฀wholly฀owned฀smelting฀unit฀in฀Spain,฀and฀
PT฀Smelting฀is฀PT฀Freeport฀Indonesia’s฀25-percent-
owned฀Indonesian฀smelting฀unit.฀The฀remainder฀of฀our฀
copper฀concentrate฀is฀sold฀principally฀under฀long-term฀
contracts฀to฀customers฀with฀long-standing฀and฀
positive฀commercial฀relationships฀with฀our฀Company.฀Our฀
largest฀non-affiliated฀customers฀are฀located฀in฀Asia.
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