Freeport reorganizes its management structure

Freeport reorganizes its management structure

NEW ORLEANS (Dow Jones): Freeport-McMoran Copper & Gold Inc. reorganized its management structure, giving more responsibility for the operations of its principal unit, PT-Freeport Indonesia, to its Indonesian-based executive team.

In a press release on Thursday, Freeport-McMoran said PT- Freeport's executive team will assume responsibility from the company's New Orleans group for strategic planning for operations, mineral exploration and external relations.

The Indonesian team is headed by president-director Adrianto Machribie.

Correspondingly, the New Orleans organization will be significantly smaller, consisting of Freeport-McMoran's executive management and its corporate financial and administrative organization.

Freeport-McMoRan will be led by an office of the chairman consisting of Chairman and Chief Executive James R. Moffett, President Richard C. Adkerson, and Machribie.

Moffett will have primary responsibility for exploration and operations. Adkerson will have primary responsibility for financial and administrative management.

Reducing the size of the New Orleans operation will cut overhead costs, Freeport-McMoRan said.

Earlier this month, Freeport-McMoRan said third quarter results will be hurt by exchange rates and a $16 million charge due to the impact of hedge contracts.

Freeport-McMoRan is engaged in mineral exploration and development, mining and milling of copper, gold and silver, and smelting and refining of copper concentrates.