Freeport-McMoRan Copper & Gold Inc. Updates Status of Operations at PT Freeport Indonesia Following Accident at Underground T...
12 Juni 2013 - 2:00PM
Business Wire
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) today
provided an update on the status of PT Freeport Indonesia’s (PT-FI)
Grasberg operations in Papua, Indonesia following the May 14, 2013
accident at an underground training facility.
Although the tragic accident occurred outside the area of mining
operations, PT-FI temporarily suspended mining and processing
activities at the Grasberg complex out of respect for and in
sympathy of the deceased and injured workers and their families,
and to devote full attention to the rescue and recovery effort. The
rescue and recovery effort was completed on May 21, 2013. Most
regrettably, there were 28 fatalities and 10 injuries associated
with the accident.
The incident is being thoroughly investigated by PT-FI,
international experts, the Indonesian Department of Energy and
Mineral Resources (DEMR) and other government authorities with
PT-FI’s full cooperation. Representatives of the DEMR have
completed a preliminary review of the incident and have issued
several recommendations, which PT-FI is addressing.
James R. Moffett, Chairman of the Board of FCX, and Richard
C. Adkerson, Vice Chairman, President and Chief Executive Officer
of FCX, said: “We again offer our deepest condolences to the
families of our deceased and injured workers. We are deeply
committed to the safety of our workforce and to the highest
international standards in ensuring safety for our workforce.
This was an unprecedented event in our more than 40-year history
of operations in Papua. We are taking all actions required to
prevent future incidents and to assure the safety of our
workforce.”
PT-FI has conducted safety inspections throughout its operations
and is working with the DEMR to resume operations in a phased
approach. Pending approval from the DEMR, open pit and
concentrating operations would commence initially followed by a
ramp-up in underground operations upon completion of inspections
and any corrective actions in coordination with government
authorities.
The estimated daily impact of the temporary suspension of
operations approximates 3 million pounds of copper and 3,000 ounces
of gold. For the period between May 15, 2013 and June 11, 2013, the
estimated impact on PT-FI production approximated 80 million pounds
of copper and 80,000 ounces of gold. PT-FI is actively working with
government authorities on a phased restart of operations and will
update its production outlook as additional information becomes
available.
Because of the temporary disruption, PT-FI has notified its
customers of a Force Majeure event under its concentrate sales
agreements.
FCX is a premier U.S.-based natural resource company with an
industry leading global portfolio of mineral assets, significant
oil and gas resources and a growing production profile. FCX is the
world’s largest publicly traded copper producer.
FCX’s portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world’s largest copper and gold
deposits; significant mining operations in the Americas, including
the large-scale Morenci minerals district in North America and the
Cerro Verde and El Abra operations in South America; the Tenke
Fungurume minerals district in the Democratic Republic of Congo;
and significant oil and natural gas assets in North America,
including reserves in the Deepwater Gulf of Mexico, onshore and
offshore California, in the Eagle Ford and Haynesville shale plays
and industry leading position in the emerging shallow water,
ultra-deep gas trend on the Shelf of the Gulf of Mexico and onshore
in South Louisiana. Additional information about FCX is available
on FCX's website at www.fcx.com.
Cautionary Statement Regarding Forward Looking
Statements: This press release contains forward-looking
statements, which are all statements other than statements of
historical facts, such as those statements regarding completion of
the pending acquisitions. The words “anticipates,” “may,” “can,”
“plans,” “believes,” “estimates,” “expects,” “projects,” “intends,”
“likely,” “will,” “should,” “to be,” and any similar expressions
are intended to identify those assertions as forward-looking
statements.
FCX cautions readers that forward-looking statements are not
guarantees of future performance and its actual results may differ
materially from those anticipated, projected or assumed in the
forward-looking statements. Important factors that can cause FCX's
actual results to differ materially from those anticipated in the
forward-looking statements include the outcome of the investigation
of the tunnel collapse in the underground training facility at
PT-FI and other factors described in more detail under the heading
“Risk Factors” in FCX's Annual Report on Form 10-K for the year
ended December 31, 2012, filed with the U.S. Securities and
Exchange Commission (SEC) as updated by our subsequent filings with
the SEC.
Investors are cautioned that many of the assumptions on which
FCX's forward-looking statements are based are likely to change
after its forward-looking statements are made, including for
example commodity prices, which FCX cannot control, and production
volumes and costs, some aspects of which FCX may or may not be able
to control. Further, FCX may make changes to its business plans
that could or will affect its results. FCX cautions investors that
it does not intend to update forward-looking statements more
frequently than quarterly notwithstanding any changes in FCX's
assumptions, changes in business plans, actual experience or other
changes, and FCX undertakes no obligation to update any
forward-looking statements.
Freeport-McMoRan Copper & Gold Inc.Financial
Contacts:Kathleen L. Quirk, 602-366-8016orDavid P. Joint,
504-582-4203orMedia Contact:Eric E. Kinneberg, 602-366-7994
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