PT Freeport Indonesia (PTFI) grope pocket over US$1 billio to dig Freeport-Mcmoran Inc., (NYSE: FCX) announced an US$800m reduction in 2020 estimated capital expenditure from initial planned $2.8 billion, including $1.8 billion for underground projects in the Grasberg, West Papua - Photo by Inalum

JAKARTA (TheInsiderStories) – United States (US) miner, Freeport-Mcmoran Inc., (NYSE: FCX) announced an US$800m reduction in 2020 estimated capital expenditure from initial planned $2.8 billion, includes $1.8 billion for underground projects in the Grasberg, West Papua. The copper and gold producer also reported a quarterly loss, as production fell in Indonesia and South America. 

In the first quarter of 2020, the company reported a net loss of $491 million and the production of copper fell 6.3 percent to 731 million pounds. Its also announced to revises its operating plans in response to the COVID-19 pandemic and the resulting negative impact on the economy worldwide. Its implementing a series of actions to adjust mine plans and corresponding milling and mining rates in an effort to increase cash flow in lower price.

In March of 2020, Freeport-Mcmoran has raised funds $2.5 billion in senior notes to fund the underground mining projects through PT Freeport Indonesia (PTFI). According to the president and CEO, Richard Adkerson, the Block Cave underground mine and the Deep Mill Level Zone continued to ground even in the midst of the epidemic.

The projects is estimating need costs $3.5 billion from 2020 to 2024 or $800 million per year, excluding contributions from its partner, PT Indonesia Asahan Aluminum. Adkerson explained, ore production from the Grasberg reached 37,000 metric tones (MT) per day.

“At the end of the first quarter, we were able to produce up to 40 MT of ore per day and will continue to increase,” he told the audiences through a video conference last week.

In line with the increase in underground mining production, PTFI also projects an increase in sales by 1.4 billion pounds of copper and 1.4 million ounces of gold starting next year. In 2022, copper sales were targeted at 1.7 billion pounds and gold at 1.7 million ounces.

The peak, in 2023, copper sales will stabilize at 1.7 billion pounds and gold will reach 1.8 million ounces. Of these two underground mines, Freeport-McMoran once projected that it could obtain gross revenue of $150 billion.

FCX is a leading international mining company with headquarters in Phoenix, Arizona. The miner’ portfolio of assets includes the Grasberg in Indonesia, one of the world’ largest copper and gold deposits, and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

Written by Staff Editor, Email: theinsiderstories@gmail.com