Freeport-McMoRan 2007 Annual Report Download - page 19

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17
Operational Overview
Tenke Fungurume Mine, Democratic Republic of Congo.
This minerals district is believed to hold the largest undeveloped
high-grade copper and cobalt ore body in the world today.
AFRICA
TENKE FUNGURUME DEVELOPMENT
One of the most exciting minerals
development projects in the world is the
Tenke Fungurume development, which is
under way in the Katanga province of the
Democratic Republic of Congo (DRC), at
the heart of the African copper belt. FCX
holds a 57.75 percent interest in the
Tenke Fungurume copper/cobalt mining
concession, which is believed to include
the largest undeveloped high-grade
copper and cobalt ore body in the world.
The initial project at Tenke Fungurume
is based on initial ore reserve estimates
of approximately 100 million metric tons
with ore grades of 2.3 percent copper
and 0.3 percent cobalt. Construction is in
progress and operations are targeted to
commence in 2009, with average annual
production of approximately 250 million
pounds of copper and 18 million pounds
of cobalt. There is significant potential
to expand the operation to become one
of the world’s leading copper/cobalt
mining operations.
FCX is responsible for funding 70
percent of Tenke Fungurume project
development costs and, at our joint
venture partner’s election, is also
responsible for financing our partner’s
share of project costs that exceed 25
percent of the feasibility study cost
estimates. The total capital investment
for the project is currently estimated
at approximately $900 million.
Capital cost estimates will continue
to be reviewed as engineering and
construction activities progress.
EXPLORATION UPDATE
In Africa, FCX is actively pursuing
targets outside of the initial
development at Tenke Fungurume.
Less than half of the 600-square-mile
concession has been explored. The
number of drill rigs operating on these
and other locations near the company’s
mine site has increased significantly
during the past year.
Tenke Fungurume mining operations are targeted
to begin during 2009.