For the three months ended June 30, Freeport posted a loss of US$19 million (12 per share), compared with earnings of US$19 million (12 per share) in the year-ago period.
Sales from subsidiary P.T. Freeport Indonesia (PT-FI) amounted to 256 million lbs. copper and 330,500 oz. gold, compared with 320 million lbs. copper and 410,000 oz. gold in the corresponding period of 1999.
The dip in sales is a reflection of reduced throughput rates and changes in the mining plan at the Grasberg copper-gold mine in Irian Jaya, Indonesia. Freeport has deferred much of the high-grade production to the second half of the year.
Production also suffered as a result of an accident at Grasberg in early May, in which four contract workers were killed.
PT-FI has begun implementing a government-approved stabilization plan, which includes moving 8 million tonnes over the next two months. During this period, PT-FI will submit a report to the country’s Department of Mines and Energy.
For the year, Freeport expects annual sales to fall to 1.4 billion lbs. copper and 1.9 million oz. gold, compared with 1.44 billion lbs. copper and 2.4 million oz. gold in 1999.
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