Freeport extends Grasberg's mine life<\/p>\n
NEW ORLEANS, USA (Reuter): Freeport-McMoran Copper & Gold Inc
\nsaid proved and probable recoverable reserves associated with its
\nGrasberg copper\/gold\/silver deposit in Irian Jaya, Indonesia,
\nhave increased by some 600 million metric tons of ore, increasing
\nthe mine's life to about 45 years from the previously estimated
\n26 years.<\/p>\n
The deposit is in the Block A area of Freeport's Jaya
\nproperties where RTZ Corp Plc. has a right to participate with a
\n40 percent interest in newly discovered reserves, Freeport said.<\/p>\n
RTZ's participation is conditional on the company funding up
\nto US$750 million for expansion of Freeport's existing mine and
\nmilling operations. RTZ would receive 100 percent of incremental
\ncash flow attributed to the expansion until it has received an
\namount equal to the funds it has provided plus interest on an
\namount representing Freeport's 60 percent share of the costs of
\nthe expansion.<\/p>\n
Freeport said the reserve additions average 1.18 percent
\ncopper, 1.10 grams per ton gold, and 4.54 grams per ton silver.<\/p>\n
It said this represents an increase of 12.7 billion pounds of
\ncopper (or 57 percent), 14.2 million ounces of gold (or 43
\npercent), and 41.2 million ounces of silver (or 83 percent).<\/p>\n
The new reserves are located above the 2,850 meter elevation
\ndirectly beneath the Grasberg open-pit mine and also extend
\nupward above the 3,060 meter elevation to include ores that were
\nnot minable with the open pit.<\/p>\n
The majority of the added reserves will be mined by
\nunderground block caving techniques at the completion of open-pit
\nmining at Grasberg, the company said.<\/p>\n
However, studies are underway to develop alternative mining
\nplans to allow for co-production of a high-grade (3 percent to 5
\npercent copper equivalents) portion of these new reserves in
\nconjunction with the mining of the Grasberg open-pit reserve.<\/p>\n
The Grasberg orebody remains open at depth, it said.<\/p>\n
On Dec. 31, 1994, Freeport noted, it had total proved and
\nprobable recoverable reserves totaling 1.1 billion metric tons
\naveraging 1.30 percent copper, 1.42 grams per ton gold and 4.06
\ngrams per ton silver representing 28.0 billion pounds of copper,
\n39.6 million ounces of gold and 80.8 million ounces of silver.<\/p>\n
The company said reserves for its mines, after adjustments
\nthat include estimates for 1995 production, now approximate an
\naggregate 1.7 billion metric tons averaging 1.26 percent copper,
\n1.31 grams per ton gold and 4.24 grams per ton silver
\nrepresenting 38.2 billion pounds of copper, 47.6 million ounces
\nof gold and 108.5 million ounces of silver.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/freeport-extends-grasbergs-mine-life-1447893297",
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"sponsor": "Okusi Associates",
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