Freeport's mill expansion in Indonesia on schedule
Freeport's mill expansion in Indonesia on schedule
NEW ORLEANS (Reuter): Freeport-McMoRan Copper & Gold Inc said
Tuesday construction is continuing on schedule on the fourth
concentrator mill expansion and is about 35 percent complete.
The company said completion is expected during mid-1998 at a
cost of about US$960 million, including both working capital and
$300 million to construct a coal-fired power plant and related
facilities.
To finance the expansion, the RTZ-CRA Group will provide up to
$750 million for defined costs, of which 40 percent will be
funded directly.
The remaining 60 percent will be loaned on a nonrecourse
basis, Freeport Copper said.
Exploration activities at Kucing Liar continue to indicate a
projected 200-250 million metric ton geologic resource of 2.0
percent copper equivalent previously announced on the southeast
quadrant of the Grasberg intrusive.
Drilling is being conducted from within the Kucing Liar/Lembah
Tembaga drift being driven from the Amole adit.
Freeport said surface drilling on the northern flank of the
Grasberg intrusive has also started to test for Kucing Liar-type
mineralization at the 2,500-2,900 meter elevation.
The company said it believes that both Kucing Liar and heavy
sulfide "skarn-type" mineralization could surround the Grasberg
intrusive at these depths.
In Block B, geophysical surveying and surface mapping and
sampling have identified a potential porphyry copper/gold target,
which may represent the source of the mineralizing solutions
responsible for the 3-4 million ounce gold resource previously
announced at the Wabu prospect. Drilling is continuing at Wabu
and will shortly start to test the porphyry mineralization.
It said exploration activities continue on P.T. IRJA Eastern
Minerals Corp's (Eastern Mining) Blocks I, II and III areas, with
four rigs actively exploring the Etna Bay prospect in Block I
where significant surface mineralization has been discovered.
Surface mineralization has also been found in Eastern Mining's
Block II area where exploratory drilling activities are under
way.
A detailed exploration update is expected to be announced next
month, Freeport Copper said.
In the first quarter, Freeport's exploration ventures with
RTZ-CRA incurred $13.5 million of exploration costs.
Freeport said it reported $2.7 million of exploration expense
in the first quarter of 1997 for exploration costs incurred in
the Eastern Mining area not reimbursed by RTZ-CRA. About $19.7
million and $1.0 million remain to be applied toward the RTZ-CRA
exploration funding received in 1996 for PT-FI's Block A and
Block B areas, respectively.
It said PT-FI completed the sale-lease-back of infrastructure
assets, realizing $35.9 million cash in the first quarter.
Atlantic Copper Holding SA Atlantic has begun a $13.0 million
"debottlenecking" project that is expected to increase current
production capacity of 270,000 metric tons per year by 20,000
tons and improve profitability. Completion is scheduled for mid-
1997.
As part of its previously announced share purchase program,
Freeport Copper said it bought 1.7 million common shares during
the first quarter for $52.8 million, about $30 per share. Through
April 21, Freeport has purchased some 14.7 million shares under
its purchase program of up to 20 million shares.