Summary
Freeport-McMoRan Inc. (FCX) filed an 8-K report on October 10, 2003, disclosing an incident at its affiliate PT Freeport Indonesia (PT-FI) involving a material slippage in a section of the Grasberg open pit on October 9, 2003. The company is continuing search efforts for six missing employees and has commenced clean-up activities. PT-FI is also working with Indonesia's Department of Energy and Mineral Resources to review the causes of the accident. Operationally, PT-FI is maintaining mining activities in unaffected sections of the Grasberg pit and continuing operations at its Deep Ore Zone (DOZ) underground mine and associated facilities. While the company is assessing the impact on 2003 copper and gold sales, it currently expects a deferral of a portion of fourth-quarter sales volumes into 2004. The projected deferral is not anticipated to exceed 10% of PT-FI's 2003 projected annual volumes for copper (1.4 billion pounds) and gold (2.6 million ounces), with the actual impact potentially being lower depending on the restoration of access to higher-grade mine sites within the Grasberg open pit.
Key Highlights
- 1Material slippage occurred in a section of the Grasberg open pit on October 9, 2003.
- 2Search efforts for six missing employees are ongoing.
- 3Clean-up activities have commenced at the Grasberg open pit.
- 4PT-FI is conducting a review into the causes of the accident with Indonesian authorities.
- 5Mining operations continue in unaffected areas of Grasberg and at the DOZ underground mine.
- 6A portion of Q4 2003 copper and gold sales volumes are expected to be deferred to 2004.
- 7The impact on 2003 sales volumes is not expected to exceed 10% of projected annual volumes (1.4 billion lbs copper, 2.6 million oz gold).