PHOENIX (Yosefardi) – Freeport-McMoRan Copper & Gold Inc. reported Indonesia’s first-quarter 2014 gold production was down 1.9% to 208,000 ounces, compared to 212,000 ounces in the same period of last year.
While gold sales declined 15.2% to 162,000 ounces from previous 191,000 ounces. The average realized price was $1,299 per ounce, compared to $1,604 in first quarter of 2013.
At the Grasberg mine, the sequencing of mining areas with varying ore grades causes fluctuations in quarterly and annual production of copper and gold.
Meanwhile, copper production fell 36.1% to 140 million pounds from previous 219 million pounds. Copper’s sales dropped 44.9% to 109 million pounds from earlier 198 million pounds.
The lower sales of copper and gold was primarily due to lower milling rates as a result of the restrictions on concentrate exports from Indonesia, which resulted in the deferral of approximately 125 million pounds of copper and 140 thousand ounces of gold in first-quarter 2014.
Sales from Indonesia mining are expected to approximate 0.9 billion pounds of copper and 1.5 million ounces of gold for the year 2014, compared with 0.9 billion pounds of copper and 1.1 million ounces of gold for the year 2013.
These estimates assume resumption of exports from Freeport Indonesia beginning in May 2014.
To the extent Freeport Indonesia is unable to resume exports in May 2014, this will result in a deferral of approximately 50 million pounds of copper and 80 thousand ounces of gold per month.
Upon a favorable resolution of the restrictions on exports matter, sales from Indonesia mining are expected to increase through 2016 as Freeport Indonesia gains access to higher grade ore.