Freeport-McMoRan 2014 Annual Report Download - page 10

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OPERATIONAL OVERVIEW
NORTH AMERICA MINING
FCX leads the North America metals industry in the production of
copper and molybdenum. In North America, FCX currently operates
seven open-pit copper mines — Morenci, Bagdad, Sierrita, Saord
and Miami in Arizona, and Chino and Tyrone in New Mexico, and
two molybdenum mines — Henderson and Climax in Colorado.
Certain of FCX’s North America copper mines also produce
molybdenum concentrates and silver.
FCX has increased production from its North America copper mines
by approximately 50 percent over the past ve years and continues
to evaluate a number of opportunities to add production capacity
following positive exploration results. e Morenci mill expansion
project commenced operations in May 2014 and is expected to
achieve full rates in rst-quarter 2015. e project targets average
incremental annual copper production of approximately 225 million
pounds through an increase in milling rates from 50,000 metric tons
of ore per day to approximately 115,000 metric tons of ore per day.
Morenci’s copper production is expected to average over 900 million
pounds per year for the next ve years.
North America’s consolidated copper sales of 1.66 billion pounds (at
an average realized price of $3.13 per pound) in 2014 were higher
than sales of 1.42 billion pounds (at an average realized price of
$3.36 per pound) in 2013, primarily reecting higher mining and
milling rates at Morenci and higher ore grades at Chino. FCX
expects copper sales from its North America copper mines to
approximate 1.9 billion pounds in 2015 as a result of higher mill
rates from the Morenci expansion.
Consolidated molybdenum sales totaled 95 million pounds in 2014
and 93 million pounds in 2013. FCX expects molybdenum sales to
approximate 95 million pounds in 2015.
Photo: The Metcalf mill is the centerpiece of the recent
expansion at the Morenci operations in Arizona
NORTH AMERICA COPPER
RESERVES BY MINE
35.6 billion lbs
36% Morenci
3 0 % Sierrita
2 2 % Bagdad
12% Other
8