JAKARTA (TheInsiderStories) - American-based miner, Freeport-McMoRan Inc., (NYSE: FCX) expect the production of its Indonesia around 1.3 billion pounds of copper or 589,670 tones in this year from 2020 produced 366,956 tones of copper, said the management yesterday. The increase comes from open pit to underground mining at the giant Grasberg mine in West Papua, which is operated by PT Freeport Indonesia (PTFI).
Freeport has a 48.76 stake in PTFI together with local miner, PT Indonesia Asahan Aluminium (MIND ID). PTFI has reported the copper sales reached 804 million pounds in 2020 or jumped 20.54 percent compared to the previous year of 667 million pounds. The realization of production also rose from 607 million pounds to 809 million pounds.
However, the gold sales dropped by 13.46 percent, from 973,000 ounces to 842,000 ounces in 2020. The output also decreased from 863,000 ounces to 848,000 ounces. In this year, the copper sales are projected jump to 1.3 billion pounds from total output 1.4 billion pounds. Sales of gold also estimating climbs to 1.3 million ounces and the productions 1.4 million ounces.
The ramp-up of underground production at the Grasberg minerals district in Papua continues to advance on schedule. During fourth quarter of 2020, a total of 56 new drawbells were constructed at the Grasberg Block Cave and Deep Mill Level Zone (DMLZ) underground mines, bringing cumulative open drawbells to over 370.
Combined average production from the Grasberg and DMLZ mines approximated 85,000 metric tones of ore per day. The successful completion of this ramp up is expected to enable PTFI to generate average annual production for the next several years of 1.55 billion pounds of copper and 1.6 million ounces of gold at an attractive unit net cash cost.
PTFI estimated the annual capital spending on underground mine development projects is expected to around $900 million per year starting 2020 through 2022. The aggregate costs (before scheduled contribution from MIND ID) are expected to average $1.1 billion per year in the same period.
From these two underground mines, Freeport McMoran projected a gross income up to $150 billion with assumption the production will last 20 years and the price of copper is $3 per pound and gold is $1,500 per ounces. Ore production in the first quarter of this year is projected to reach 103,000 metric tones per day, said Adkerson.
PTFI operated one of the world’ largest copper and gold mines at the Grasberg mineral district in Papua. The miner produces copper concentrate that contains significant quantities of gold and silver. Freeport Mcmoran has a 48.76 percent ownership interest in PTFI and manages the mining operation.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
