Freeport gets payment

Freeport gets payment

NEW ORLEANS (Reuter): Freeport-McMoRan Copper & Gold Inc said the RTZ-CRA mining group has made a US$184 million payment for exploration and expansion spending under joint venture programs announced in 1995.

Freeport said the definitive documentation for those programs was signed Friday, resulting in the payment to Freeport Copper and 82 percent owned PT Freeport Indonesia Co.

The two companies will use the funds to reduce bank debt, Freeport said.

With the completion of definitive documentation, RTZ-CRA has fully funded its $100 million exploration commitment, reimbursed PT Freeport Indonesia for expansion capital spending incurred, begun funding future expansion costs, and become a 40 percent partner in the current Indonesian expansion above 118,000 metric tons per day, Freeport said.

Also, RTZ-CRA can now elect to participate in Freeport Copper's future development projects in Indonesia.

As previously announced, Freeport and RTZ-CRA have established the economic justification for an expansion of the Indonesian facilities, subject to certain approvals.

In addition to funding its 40 percent share of expansion costs, Freeport said, RTZ-CRA will loan up to $450 million on a nonrecourse basis for PT Freeport Indonesia's share of costs for expansion activities above 118,000 tons of ore per day in the Block A area, where operations are underway.