Freeport-McMoRan 2010 Annual Report Download - page 18

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16
As of December 31, 2010, FCX’s estimate of consolidated recoverable proven and
probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold
and 3.39 billion pounds of molybdenum. Net reserve additions of 20.2 billion pounds
of copper and 0.87 billion pounds of molybdenum replaced approximately 5 times
FCX’s 2010 copper production and approximately 12 times FCX’s 2010 molybdenum
production. Estimated recoverable reserves were determined using long-term average
prices of $2.00 per pound for copper, $750 per ounce for gold and $10.00 per pound
for molybdenum.
At December 31, 2010, in addition to the estimated proven and probable reserves,
FCX identified estimated mineralized material (assessed using a long-term average
price of $2.20 per pound for copper) with incremental contained copper of 110 billion
pounds. FCX continues to pursue aggressively opportunities to convert this mineralized
material into reserves, future production volumes and cash flow.
Reserves and Mineralized Material
Investment in
Attractive
Development
Projects
Cash Flows/
Returns
Mineral
Resources
Reserve
Additions
Production
Growth
Value Creation Focus
We were successful in
achieving a significant
increase in our mineral
reserves, and exploration
will continue to drive
our future plans. As
we seek new metals
deposits around the
world, we are primarily
focused on the proven
rich areas near our
existing operations.
(pictured: exploration
drilling near the Morenci
mine in Arizona).