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2007 Annual Report
6Letter to Shareholders
NORTH AMERICA
Our new Safford mine in Arizona
produced its first copper in December
2007, ahead of schedule. In December,
we announced plans to restart our
Climax mine in Colorado, which is
believed to be the largest, highest-grade
undeveloped molybdenum ore body in
the world. We are also moving forward
to restart our Miami mine in Arizona,
expected to begin producing copper in
2010; and we have several incremental
expansion projects in progress.
SOUTH AMERICA
In 2007, we reached capacity from
our recently expanded mill complex
at our Cerro Verde mine, increasing
production of both copper and
molybdenum. We are also pursuing
plans to develop a large sulfide
deposit at El Abra, which should begin
producing copper by 2010 and extend
the life of the mine by 10 years.
INDONESIA
Projects are under way to develop
large-scale underground ore bodies
at the Grasberg mine. These include
further expansion of the existing Deep
Ore Zone mine and developing the
high-grade Big Gossan mine, expected
to be complete by 2010; and continued
work on the Common Infrastructure
project to provide access to the Grasberg
underground ore body, the Kucing Liar
ore body and other deposits.
AFRICA
Our company is operator and 57.75 percent
owner of Tenke Fungurume, believed to
be the largest copper and cobalt mining
concession in the world, located in the
Katanga province of the Democratic
Republic of Congo. Significant
construction activities for this high-
potential project are in progress, with
operations targeted to begin during 2009.
In addition to our long-lived reserve
profile, we have opportunities to expand
our reserves in the large mining districts
where we operate. We have active
exploration programs near our major
sites in the Americas and on the highly
prospective concessions we have in
Africa and Indonesia.
We have created a company that is well
positioned to participate in what we
believe will be a positive copper market
for the future.
From a supply/demand standpoint,
the copper market is well positioned
for producers. Inventories remain at
historically low levels. The industry is
characterized by limited supplies and a
larger demand base, primarily because
of the emergence of China as the world’s
largest consumer of copper. Demand for
copper has increased as China, India
and other emerging nations develop
their cities and infrastructure.
In terms of supply, there is an absence
of major new mines under development.
It is very difficult to develop projects
in today’s world, with issues such as
escalating costs, limited availability of
people and equipment, and technical
and environmental challenges.
FREEPORT-McMoRan COPPER & GOLD INC.
Debt
$ in billions
AT TIME
OF
ACQUISITION
12/31/07
$15
$20
$10
$5
$0
Enterprise Value
$ in billions
$30
$40
$50
$20
$10
Y-E 2006 Y-E 2007