Freeport-McMoRan 2011 Annual Report Download - page 16

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Indonesia
Copper Sales
in billion lbs
2012e 2011
0.60
1.00 1.50
0.80
1.00
1.25
0.40 0.50
0.75
0.20 0.25
Indonesia
Gold Sales
in million ozs
2012e 2011
Powerful and ecient new
railroad locomotive engines
use more than 16,000 pounds
of copper. Electrically
powered subway cars, trolleys
and buses use an average of
2,300 pounds of copper
each. A Triton-class
nuclear submarine uses
about 200,000 pounds of
copper. As transportation
technology advances, the use
of copper grows.
2011
Cash Unit Costs
Site Production & Delivery $ 2.21
By-product Credits (2.47)
Treatment Charges 0.19
Royalties 0.16
Unit Net Cash Costs $ 0.09
Indonesia Unit Cash Costs
per lb of copper
Indonesia
rough its subsidiary, PT Freeport Indonesia, FCX mines the world’s largest single reserve of
both copper and gold in the Grasberg minerals district in Papua, Indonesia.
FCX has several projects in progress in the Grasberg minerals district, including development of
the large-scale, high-grade underground ore bodies located beneath and nearby the Grasberg open
pit, which is expected to be depleted in 2016. ese projects include the continued development of
the Common Infrastructure project, the Grasberg Block Cave, and the Big Gossan and Deep Mill
Level Zone underground mines. FCX will continue to benet from the eciencies of large-scale
operations once these underground mines reach full rates.
Indonesia’s consolidated copper sales totaled 846 million pounds at an average realized price of
$3.85 per pound in 2011, compared to 1.2 billion pounds at an average realized price of $3.69 per
pound in 2010. Indonesia’s consolidated gold sales totaled 1.3 million ounces at an average realized
price of $1,583 per ounce in 2011, compared to 1.8 million ounces at an average realized price of
$1,271 per ounce in 2010. Lower copper and gold sales volumes in 2011 primarily reected the
impact of labor-related disruptions and the temporary suspension of milling operations because
of damage to the concentrate and fuel pipelines. FCX expects 2012 sales from Indonesia to
approximate 930 million pounds of copper and 1.1 million ounces of gold. Gold sales volumes are
projected to be lower in 2012 because of mining in a lower grade section of the Grasberg open pit.
OPERATIONAL OVERVIEW
Indonesia Copper
Reserves by Mine
31.6 billion
consolidated lbs
89% Underground
11% Open Pit
Connection Point
Note: e=estimate.
14 | FREEPORT-MMR COPPER & GOLD INC.