Freeport To Boost Capital Expenditure Amid Economic Recovery
20 Januar 2011 - 3:16PM
Dow Jones News
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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