Freeport McMoRan Copper & Gold (FCX) is set to almost double its capital expenditure in 2011 as it embarks on a number of major projects, a sign that the U.S. producer expects a recovery in the global economy and a revival in demand for commodities.

The company, which had copper sales of 3.85 billion pounds in 2010, expects capital expenditure of $2.5 billion for 2011. Of this, $1.3 billion is earmarked for major projects, which primarily includes underground development activities at Grasberg in Indonesia, construction activities at the Climax molybdenum mine in the U.S. and completion of the initial phase of the sulfide ore project at El Abra in Chile.

In addition, Freeport is considering more investments at several of its sites, it said.

"Capital spending plans will continue to be reviewed and adjusted in response to changes in market conditions and other factors," the company added.

The remaining $1.2 billion is for sustaining capital, Freeport noted.

Like other copper producers, Freeport reacted to the economic downturn by postponing projects and curtailing output at a number of its operations. The price of copper, used in housing and construction, has staged a strong recovery and is now in uncharted waters at all-time highs above $9,700 a metric ton.

-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; andrea.hotter@dowjones.com
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