PHOENIX–(BUSINESS WIRE)–Freeport-McMoRan Inc. expects its Indonesian operation under PT Freeport Indonesia, to sell 1.5 billion pounds of coppert and 1.8 million ounces of gold in 2016.
In 2015, Freeport Indonesia sold 744 million pounds of copper and 1,222 billion ounces of gold. Copper production reached 752 million pounds last year while gold production was 1,232 billion ounches.
At the Grasberg mine, the sequencing of mining areas with varying ore grades causes fluctuations in quarterly and annual production of copper and gold.
Freeport Indonesia expects ore grades to improve significantly beginning in the second half of 2016 with access to higher grade sections of the Grasberg open pit, resulting in higher production and lower unit net cash costs.
Freeport Indonesia continues to engage in discussion with the Indonesian government regarding its Contract of Work (COW) and long-term operating rights.
In connection with its COW negotiations and upon completion of concluding the agreement, PT-FI has agreed to construct new smelter capacity in Indonesia and to divest an additional 20.64% interest in Freeport Indonesia at fair market value.