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.