Freeport Papua Gold Production Drops

jaysonhyd   October 1, 2016  

Production and sales of PT Freeport Indonesia copper plummeted in the second quarter of 2013. This, due to the collapse of an underground tunnel incident at the Grasberg mine in Papua in mid-May.

Reported by page FCX, Wednesday, July 24, 2013, Freeport posted sales of 158 million pounds of copper and 151 thousand ounces of gold, lower than the same period last year, in which Freeport managed to record sales of 183 million pounds of copper and 247 thousand gold.

However, in the first half of 2013, sales of Freeport is still higher. The US-based mining company managed to record sales of 356 million pounds of copper at an average price of U.S. $ 3.08 per pound. While the first half of 2012, Freeport sold only 317 million pounds of copper at an average price of U.S. $ 3.56 per pound.

Meanwhile, on the production side, Freeport in the second quarter of 2013 only produced 139 million pounds of copper and gold by 131 thousand thousand ounces. Much lower than the first quarter of 2012 gold production, which reached 173 million pounds of copper and 230 thousand ounces of gold.
In total, the company has produced copper as much as 358 million pounds of copper and 343 ounces of gold in the first half of 2013.

Meanwhile, the decline in production and sales of Freeport Indonesia due to the underground tunnel collapse incident that killed 28 people and left 10 people injured. Freeport immediately suspend mining activities in honor of the victims and investigate the cause of the collapse of the tunnel.

On June 24, 2013, Freeport re-open the mine open and operational on July 9, 2013, Freeport back underground mines operate consent Ministry of Energy and Mineral Resources. As of July 19, 2013, Freeport cultivate 200 thousand metric tons of ore per day.

Freeport Indonesia is currently being ramped up production of the DOZ underground mine. Now, the company has to process 40 thousand metric tons of ore per day and will be increased to 80 thousand metric tons of ore per day by mid-2014.

Freeport expects to sell 900 million pounds of copper and 1 million ounces of gold in 2013, an increase over 2012 and sales of 700 million pounds of copper and 900 thousand ounces of gold.

In addition, Freeport Indonesia has also started discussing bilateral discussions with the union wage increases. Hopefully, a new contract may apply in September 2013.