PHOENIX (Yosefardi) – Freeport-McMoRan Copper & Gold Inc. reported Indonesia’s second-quarter 2013 copper sales of 158 million pounds and gold sales of 151 thousand ounces, lower than second-quarter 2012 copper sales of 183 million pounds and gold sales of 247 thousand ounces resulting primarily from a suspension of activities following the accident.
On May 14, 2013, a tragic accident, which resulted in 28 fatalities and 10 injuries, occurred at PT Freeport Indonesia when the rock structure above an underground ceiling for a training facility collapsed in an unprecedented and unexpected event.
The temporary suspension of mining and processing activities at PT Freeport Indonesia, which has subsequently resumed, resulted in an estimated production impact of approximately 125 million pounds of copper and 125 thousand ounces of gold for second-quarter 2013.
At the Grasberg mine, the sequencing of mining areas with varying ore grades causes fluctuations in the timing of ore production resulting in varying quarterly and annual sales of copper and gold.
Sales from Indonesia mining are expected to approximate 0.9 billion pounds of copper and 1.0 million ounces of gold for the year 2013, compared with 0.7 billion pounds of copper and 0.9 million ounces of gold for the year 2012.
Projected 2013 sales volumes of copper and gold are approximately 230 million pounds and 250 thousand ounces lower than April 2013 estimates primarily reflecting the impact of the temporary production suspension in second-quarter 2013, impacts of achieving a full ramp-up in underground production and the timing of accessing higher grade material in the open pit.
Sales from Indonesia mining are expected to increase in 2014 through 2016 as PT Freeport Indonesia gains access to higher ore grades.
PT Freeport Indonesia has commenced discussions with union officials regarding its bi-annual labor agreement which is scheduled for renewal in September 2013.