According to Reuters,
Freeport McMoRan Copper & Gold
) expects its copper output from the Grasberg mine in Indonesia
to rise 12% in 2014. As part of the policy to increase the value
of exports of raw materials from Indonesia, the mining companies
have to process ore before shipping it overseas, effective
Indonesia's mining ministry has also come up with a proposal that
would allow Freeport's exports of copper concentrate from the
Grasberg mine to continue until 2017.
Freeport expects copper production to be 500,000 tons in 2014
compared to roughly 445,000 tons in 2013. Moreover, Gold
production is expected to increase by around 47% to about 50-55
tons in 2014 from 37.5 tons in 2013.
The Indonesian mine is the world's second largest copper mine and
Indonesia is the world's top exporter of nickel ore, thermal coal
and refined tin.
Freeport Indonesia's third-quarter 2013 copper sales were 237
million pounds and gold sales recorded 278,000 ounces, higher
than third-quarter 2012 copper sales of 195 million pounds and
gold sales of 178,000 ounces, respectively, mainly due to higher
ore grades and increased mill rates.
In May 2013, an accident occurred at the Grasberg mine after the
collapse of a tunnel at the mine that took 28 lives. Though the
accident took place outside the mining operations area, Freeport
temporarily suspended mining and processing activities at the
Grasberg complex as a part of the rescue and recovery operation.
Freeport, which is among the prominent players in the mining
industry along with
Newmont Mining Corp.
Barrick Gold Corp.
Kinross Gold Corp.
), is expected to release its fourth-quarter 2013 results on Jan
Freeport currently retains a short-term Zacks Rank #3
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